Podcast:

Why Our Trading Strategy Works

In this weekly video:

00:25 – Why does your system work?

00:43 - Issues so many traders have

01:35 – A trader who traded 5 minute charts

02:20 – My strategy is realistic to trade

02:58 – Why does my strategy work?

04:30 – You don’t need to understand all candle patterns

05:50 – Our 10th birthday at The Forex Trading Coach

I want to explain why I believe my trading strategy works so well. So let's say I talk about that and more right now.

Hey, traders, Andrew Mitchem here from The Forex Trading Coach with video and podcast number 314.

Why does your system work?

And I often get asked questions, people say to me, "Hey, Andrew, why is it that your system works, or why do you believe it works? How does it help so many people?" And there's a number of reasons, but I just wanted to share with you probably issues that you may be having as a trader. You see when people start trading.

Issues so many traders have

They think they need to clutter their charts with indicators all over the place. They need to either think that they need to be an expert in fundamentals. They think they need to trade all of the time.

Now, most people when they start off, because trading's exciting and you want to take lots of trades, otherwise why be a trader, they think they need to take trades all the time. So most people put a whole jumble of indicators, and lines, and arrows, and squiggly bits all over their charts, they use supposed great combination of indicators and everybody thinks they're going to get the perfect combination of indicators. They're going to add this one, and add this one, and overlay that one, and only take when this one gets to 50%, and overboard, and all these type of things, and they want to do this on one minute and five minute charts at least to complete confusion.

A trader who traded 5 minute charts

Now, I actually knew a guy, who actually lived not far from me here in Hamilton. A number of years I went to see him, and he actually traded really well and made a lot of money, this guy made a lot of money off five minute charts. Trouble was, he got completely burnt out and he doesn't trade today. And I went to his office, and he had this beautiful house, lovely house, but it was all darkened rooms, he had screens everywhere, completely it was his own office, no kids allowed in it, no wife allowed in it, and it was just purely trading, that's all he did. But the trouble is, he spent all day trading, he spent all evening trading, he spent all night trading, and yes he made a lot of money at the time, but he completely burnt out, it wasn't real.

My strategy is realistic to trade

And I think that a big part of trading and why my system works, and it works for myself and so many other people, is because it's real, it's practical. Now I started trading 15 years ago, I started coaching 10 years ago in April, so we're almost up to our 10th birthday. Now I've been teaching the same way, and I've been actually trading the same way now for 12 years. Nothings changed with the way I've traded. So after two years of working really well The Forex Trading Coach started, but it took me three years up to that to get to that stage. But 12 years with the same strategy, nothings changed, and it's been through all different market conditions, et cetera.

Why does my strategy work?

So why does it work? Well, first of all, it works on all pairs and all timeframes, and it allows you to have a lifestyle, and I think that's really important. That's why we're still going all these years later, because it is real, but it doesn't require you to sit at the computer all day. So the reasons why it works will be this.

We're only looking to potentially taking new trade on the close of a candle. So because I'm a price action based trader, I'm not looking at candle flags, and triangles, and ellet wave and all those things which sometimes look really,