Podcast:

Trade what you see not what you think

In this weekly video:

00:23 – The traders’ problem

00:41 - Trade what you see and not what you think

01:35 – Information overload and confusion

02:21 – The charts tell me where the market is moving – 2 trade examples

02:58 – Trade makes 3.2:1 reward:risk in 5 hours on a live webinar – here are the trade results https://www.screencast.com/t/s2oFlIneC

03:37 – Fundamental news is trading what you think

Do find that once you place a trade, the market goes the other way? If that's you, you need to listen to this.

Hi Forex traders, Andrew Mitchem, The Forex Trading Coach video and podcast number 246.

The traders’ problem

We all seem to have this problem, we place a buy trade, the market goes down. We place a sell trade, the market goes up. If you have problems with your trading, getting on the right side of the market, if you have that issue, you need to listen to what I've got to mention here.

Trade what you see and not what you think

To me, as a Forex trader and someone that's been trading as a technical trader for 14 years, you have to trade what you see and now what you think. It's a really important phrase. Have a think about that, trade what you see on the charts, and not what you think is going to happen. Because the charts tell you what's actually happening right now. Whether I think the Euro or US is gonna go up or down, doesn't really matter. What's happening on the charts? Are we seeing bullish patterns, are we seeing bearish patterns? Are we seeing an uptrend followed by a pullback, and then an opportunity to get along again? Are we seeing the market moving flat? What's the Euro doing against other Euro currencies. As an example, the Euro against the Yen, the Euro against the Pound, against the Aussie, against the Kiwi, against the Canadian, et cetera.

You have to put all this together, but it's about trading what you see on the charts right now, is the important thing.

Information overload and confusion

People get very very confused with information overload. It happens in all forms of lives, but trading is no different. You have confusing and lagging indicators, people, in my opinion, read too much into the news and the fundamentals, and people get confused on different time frame charts with one time frame saying the market's moving up, the other time frame saying the market's moving down. It becomes analysis paralysis problem. What do you do?

A lot of people get complete confusion and they either random guess something, or they freeze, they don't take anything, but in the end you can almost be certain that as soon as you press buy, the market will move down. That's just an issue that so many people have.

The charts tell me where the market is moving – 2 trade examples

For me, the charts tell me what I need to know because that's where the market is moving, that's where the big players are pushing the market right now.

I'll give you some examples. Just last night on my client's live webinar, I took two trades, they were both on the 12 hour charts, which I have the ability to trade on MT4, sort of a clever bit of software that I got. One was a sell trade on the Euro New Zealand dollar, the other was a sell trade on the Euro Australian dollar. The Euro Aussie's still open, behind me here, and it's going really well, it's up at around 1.8 to one trade, or .9% account gain, with half percent risk.

Trade makes 3.2:1 reward:risk in 5 hours on a live webinar – here are the trade results https://www.screencast.com/t/s2oFlIneC

The Euro New Zealand in five hours after I placed the trade had hit the full profit target.