Podcast:

Another +6.55% this week - Get the Basics Right & Trade Well

In this video:

00:36 – Travelling and Trading – Focusing on the Basics

01:18 - Another +6.55% gain this week

01:45 – Trading the Basics well leads to good trades

03:04 – Trading from the right hand side of the chart

04:05 – Control your risk

04:53 – Don’t count Pips

05:25 – Reward:Risk is important

06:01 – The importance of getting the foundations right

I'm going to explain why I believe it is so important that you need to get the fundamental basics correct in order to be a good trader. Let's talk about that and more right now.

Hey, forex traders, Andrew Mitchem here, The Forex Trading Coach video and podcast number 330.

You'll notice I'm wearing a jumper, a sweater back here in New Zealand in the middle of winter after three weeks over in Europe.

Travelling and Trading – Focusing on the Basics

 If you've been following me over the last three or four weeks, you'd have been noticing that I've been overseas travelling around, and I've been really focusing on the basics.

In that time, I've been trading just the monthly, weekly and daily charts and nothing else. You would have seen that we've made some exceptional gains, including last week, which was my first week back at home. We had made with only a quarter percent risk per trade, 12.79%. That's all trades that were posted on our membership site. Realistically, although I called it a 30-minute-a-day trip, most of the time, it was 10 minutes a day.

Another +6.55% gain this week

Just this week, it's now Friday, I still have some open trades open that are at 0.9% so almost a 1% gain on open trades that are open just today, but this week already, we've had closed trades of another 6.55%, again, just using monthly, weekly, daily charts and a breakout strategy that we use once a week. Again, 10, 20 minutes once a day and that's it.

Trading the Basics well leads to good trades

Not only did I want to share with you those results, which I believe are very outstanding and excellent results. Also, to let you know of course, they were on their membership site, but the thing is, the important thing is, yes, the results are wonderful, but it's more important to understand that we do this by trading the basics, the fundamental basics. I don't mean fundamental as in news announcements and worrying about what's happening politically around the world. I don't mean that fundamental. I mean fundamental basics as in getting everything correct, the basics, the building blocks, the foundations of trading.

You must remember that we've been doing this for a long, long time, and so it's a bit like riding a bicycle. After a while, it becomes almost like second nature. However, we don't deviate from the basics with our trading and that we have a strategy that we know and we understand and that's very low time consuming for us to trade. It's very easy to identify a trade and go, yes, it's a trade or no, it's not. That's what I mean by the basics. You've got to have an understanding of price action if you want to become a technical trader. We use candle shapes, candle patterns, and it's very easy to look at your charts but in real time.

Trading from the right hand side of the chart

It's no good having a strategy or a system that you can make a fortune for or from it, but with hindsight, after you see what's already happened. You've got to be able to do it from the right hand side of the chart. You'd hear me talking ... You would have heard me talking about that many, many, many times about the profitable trader is the one that can trade from the right hand side of the chart and decide what's happening. You don't need to also sit there glued to your screens all day long watching line A cross over line B and all those things. That's just not good trading in my opinion.

You need to be able to wait for the close of a candle, see a set up and, yes, it's a trade or no, it's not,