Podcast:

In this video:

00:53     Having the mindset of an investor

02:45     Trading by maximum 0.5% of your account per trade

04:58     The Holy Grail strategy

06:32     Got some trades working really nicely

It’s time to Think like an Investor in order to be a Profitable Forex Trader

In today’s video I want to talk about why you need to be thinking like a true investor and not like a gambler in order to be a profitable Forex trader. Let me explain exactly what I mean right now.

Hi traders, Andrew Mitchem here the Forex Trading Coach. Today is Friday, the 11th of October 2013. And I want to talk about using some common sense around your trading. Think of your trading as an investor, it is an investment. Look the money that I’ve got invested in my accounts here behind me, you know there’s a lot of money involved. It’s no different to any other investment. It’s no different to buying art, or property or metals or vehicles or whatever it is that you invest in. Forex trading is exactly the same and you need to have that mindset of an investor and not a gambler in order to be a profitable trader. I know that as after ten years of trading I’ve never blown an account. I’ve always used very low risk trading but there’s a lot of other things that I’ve developed that I can really help you with. So let’s talk about them right now.

Having a good Trading Plan

You see the last couple of weeks I’ve talked about of these videos and podcasts about having a suitable trading plan. Now my trading plan might not suit you. It’s what suits you that is important. It’s the time of day that suits you to trade or night. It’s the time frame, it’s the length of, you know what do you like to trade and be in out of trades within a matter of minutes, or hours, or days, or weeks. It’s what suits you that really important.

The extra strategy and what I’m using here behind me will work on any time frame and any pair; that’s not the issue, I can help you with that. The thing that you need to understand for yourself is what kind of person you are, what kind of trader you are, what suits you realistically. You see you have to have realistic expectations not only in terms of how much time you can dedicate to your trading and your learning of your trading but also in terms of your returns. And what I mean by that is that there are so many traders especially when you go through the forums etc., and you read about the sales picture robots and people and people try selling things and trying to make an absolute fortune you know hundreds of percent per month or you know thousands of percent in a year. It’s just rubbish. Don’t believe it. It’s not realistic. Yes you could do it by risking huge amounts of your account in your capital but again it’s not treating your trading like a true investor; it’s gambling.

Low risk trading approach will win in the end

So if you come back to the strategy and the philosophy that I teach in our years of very low risk trading. Now I mean low risk trading by maximum 0.5% of your account per trade – very low risk trading. It means that your emotions are controlled. It also means that yes your profits are not going to be astronomical but you don’t need them to be.

50 – 100% return per year 

You know if you’re looking work on let’s say an average between 1 and 2 percent gain on your account per week, that’s a huge return. Now to me I’m more than happy with that. You put that across the course of a year and with that compounding let’s say 2% a week. Well that compounding that’s over 100% return per year. Now that is pretty outstanding. When you look at the Fund Management companies,