How to Avoid Common Forex Strategy Failures

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#577: How to Avoid Common Forex Strategy Failures

In this video:

00:25 – Failing trading strategies.

01:00 – A lack of trading knowledge.

02:09 – What is the actual price?

03:35 – A signal service website.

04:33 – What makes us different?

05:15 – 16 years of coaching.

06:01 - 17 minutes Masterclass and Book a Call.

06:21 – Blueberry Markets as a Forex Broker.

07:01 – Comments, Like & Subscribe.

Why is it that so many trading strategies fail to deliver? They look promising and then they fail? Let's get into that a more right now.

Hey there, Traders! This is Andrew Mitchem here, the owner of The Forex Trading Coach with video on podcast number 577.

Failing trading strategies.

Today I want to talk about failing trading strategies. Why do so many strategies fail? You hear the stats out there like 90-95% of all people lose money when trading. So what is it about that the why? Why this strategy is just not working?

It's quite annoying for people. You know, people would put a lot of time and effort into developing trading strategies. They do a lot of backtesting, a lot of research, and inevitably things go wrong when they take it live. So a few reasons.

A lack of trading knowledge.

One of the main reasons is actually a lack of trading common sense and knowledge within the strategy itself. And what I mean by that is a few things. A lot of people just fail to actually understand what is happening in the market right now. Actually, is it a good time to be trading right now based on what you're seeing on the charts? And that, of course, can determine by the timeframe chart you're trading, the time of day you're trading the currency pair or even the market.

If you're looking at cryptos or metals indices, etc.. But a lot of people just rely so much on a big mismatch of indicators. And this one crossing over that one and all these results look really cool. The indicators look really flashy and and look how I've done it myself. Years and years ago I did exactly that. I was over optimizing things.

I was making the perfect, you know, curve, results and and everything on paper was looking amazing until I took it live. And time after time after time, the strategy failed and I lost money. And it gets very frustrating because, as mentioned, people spend a lot of time trying to work out a strategy for them, but they fail to look at things like the price, the obvious thing, like what is the price right now?

The amount of times I see people like selling signals and services. And as an example, there's a big right number in the way, and they're taking it buy trade straight into that round number. Like why would you do that? That just makes no sense to me. But whether that's an automated system or that's because this line crossed over that line and it says buy now that's what they do.

What is the actual price?  

They fail to look at the right hand side and go, that's a round number. And oh, let's have a look back through history. You wouldn't believe it. But every time that round number has been hit in the past multiple currencies, it hits that level and falls away again. So guess what's likely to happen right now? It's likely to head back up there and drop away again.

And so if you understand candles and you have a strategy that looks at the price and understands what's happening in the market, you can look at that and say, I think is a great opportunity for sell trade here.

My longer term might be down. You know, all these things that we look at could be saying a sell trade but a lot of other people were looking at this and they're crossing over, something's crossing over another line and they're just taking it by trade just willy nilly,