Podcast:

How much do you really want to be a Forex Trader? 

In this video:

00:51   Things you need to do to become a Forex trader

02:23   Seeking a good quality Forex education

04:05   You need to be taught from an actual trader

06:26   The EUR zone interest rates dropped 

How much do you really want to be a Forex Trader? I get emails all the time from people saying they want to be full time traders, they want to give up their job, they want to gain most of or all of their income from Forex Trading. If that sounds like you, listen up to what I’ve got to say.

Let’s get into it.

Hi it’s Andrew Mitchem here the Forex Trading Coach. Today is Friday the 8th of November and I get emails all the time, many many emails per day from people saying, “Hey Andrew what do I need to do to be a Forex Trader, whether it’s full time, whether it’s replacing my existing career, whether it’s because they’ve got no job, maybe it’s because they want some passive income or they want to trade their retirement funds, whatever it is I’m sure that one of those would apply to you. But people say, “Hey look what do I need to do?” and I say, “Well there are many things that you need to do. You’ve got to have, obviously, a passion to want to trade and to be interested in Forex Trading you see it’s not for everybody. You just can’t just suddenly say, “Hey I want to be a trader because I’ve read about it on the Internet and it looks like a really great or easy way of making lots of money for no effort. If that’s what you’re thinking don’t do it, please just don’t do it.

You need to want to be a trader

But if you’ve got the dedication, the desire to want to be a trader, the enjoyment of it; if those things are what you have then definitely go for it. But remember this: if you want to learn a new career, a new skill whatever it might be you’re probably going to school, university, college, whatever it is you call that in your country for maybe one, two, three, four, five years depending on what it is you’re learning. Of course that has a time factor, it means that you probably can’t do a lot of other things when you’re learning that because the amount of work involved in the actual course whether it’d be a practical course, or university style course, whatever it is, it doesn’t matter.

Seek good quality education

It takes time, it takes dedication and it takes a lot of money to learn any new skill and Forex trading is in some ways the same but in other ways the benefits to you are, there are so many sort of options out there but of course there’s a lot of bad options as well so you really got to filter through and find the options that suit you but what I strongly suggest is that you seek good quality Forex education. You see if you do that and yes you need to invest money into that it’s like anything, it’s like learning that new skill I talked about, you need to invest some time. The good thing is compared with maybe two or three years in university, the cost of most Forex courses is very, very, very tiny in comparison. It means you can learn whilst you’re carrying on with your normal day to day work or your family, your current job whatever it is that you’re doing but it means that you’re learning that skill and it’s something that you can earn from it while you are learning. It doesn’t mean to say you can’t start getting a job until 5 years after you finish your university course.

You need to be taught from an actual trader

You can start making money from Forex straight away but of course you need to start small and you probably need to start demo but when you do start earning money you do start small but then don’t expect to earn you know mega bucks on week one,

Podcast:

How much do you really want to be a Forex Trader? 

In this video:

00:51   Things you need to do to become a Forex trader

02:23   Seeking a good quality Forex education

04:05   You need to be taught from an actual trader

06:26   The EUR zone interest rates dropped 

How much do you really want to be a Forex Trader? I get emails all the time from people saying they want to be full time traders, they want to give up their job, they want to gain most of or all of their income from Forex Trading. If that sounds like you, listen up to what I’ve got to say.

Let’s get into it.

Hi it’s Andrew Mitchem here the Forex Trading Coach. Today is Friday the 8th of November and I get emails all the time, many many emails per day from people saying, “Hey Andrew what do I need to do to be a Forex Trader, whether it’s full time, whether it’s replacing my existing career, whether it’s because they’ve got no job, maybe it’s because they want some passive income or they want to trade their retirement funds, whatever it is I’m sure that one of those would apply to you. But people say, “Hey look what do I need to do?” and I say, “Well there are many things that you need to do. You’ve got to have, obviously, a passion to want to trade and to be interested in Forex Trading you see it’s not for everybody. You just can’t just suddenly say, “Hey I want to be a trader because I’ve read about it on the Internet and it looks like a really great or easy way of making lots of money for no effort. If that’s what you’re thinking don’t do it, please just don’t do it.

You need to want to be a trader

But if you’ve got the dedication, the desire to want to be a trader, the enjoyment of it; if those things are what you have then definitely go for it. But remember this: if you want to learn a new career, a new skill whatever it might be you’re probably going to school, university, college, whatever it is you call that in your country for maybe one, two, three, four, five years depending on what it is you’re learning. Of course that has a time factor, it means that you probably can’t do a lot of other things when you’re learning that because the amount of work involved in the actual course whether it’d be a practical course, or university style course, whatever it is, it doesn’t matter.

Seek good quality education

It takes time, it takes dedication and it takes a lot of money to learn any new skill and Forex trading is in some ways the same but in other ways the benefits to you are, there are so many sort of options out there but of course there’s a lot of bad options as well so you really got to filter through and find the options that suit you but what I strongly suggest is that you seek good quality Forex education. You see if you do that and yes you need to invest money into that it’s like anything, it’s like learning that new skill I talked about, you need to invest some time. The good thing is compared with maybe two or three years in university, the cost of most Forex courses is very, very, very tiny in comparison. It means you can learn whilst you’re carrying on with your normal day to day work or your family, your current job whatever it is that you’re doing but it means that you’re learning that skill and it’s something that you can earn from it while you are learning. It doesn’t mean to say you can’t start getting a job until 5 years after you finish your university course.

You need to be taught from an actual trader

You can start making money from Forex straight away but of course you need to start small and you probably need to start demo but when you do start earning money you do start small but then don’t expect to earn ...

Podcast:

In this video:

00:28 A great learning tool to becoming a successful Forex trader

02:02 What makes Andrew Mitchem’s webinars different?

03:06 Learning and getting inside the mindset of a professional trader

06:04 Taking trades live in front of people

Why live trading room webinars are such an important part of learning how to become a successful Forex trader

I want to share with you why attending a live trading room webinar is such an important part of becoming a successful Forex trader especially when you’re learning how to trade.

Let me tell you more right now.

Hi, this is Andrew Mitchem here the Forex Trading Coach today is Friday the 1st of November. I want to talk about live trading room webinars. It’s something that I offer my clients and it’s something I believe is so important and such a great learning tool to help you becoming a successful Forex trader. I want to tell you a few reasons why because really in my opinion there’s no better way of learning. Like I offer a video course and also live tuition and all of that is fantastic and it’s a great way to learn the basics.

But attending a live trading room webinar is something that’s a little bit different. It’s a step above everything else. But it’s important to have the right kind of webinar as well.  I mean all sorts of people offer webinars online and most of them are completely useless and boring and don’t really tell you anything.

What makes Andrew Mitchem’s live trading room webinars different

What I offer for my clients is a live trading room session and I want to tell you a little bit about that. To let you know how it can help you.  You see I hold these sessions every two weeks. They’re live. They’re in the European session. I have up to a hundred clients can attend those webinars. They’re all recorded so they can be viewed at a later date.  But the important thing is that with trading live, I trade all my charts here behind me on live accounts using the software that my clients have. And we’re talking about trading in real time. That’s the important thing. We’re looking at the right hand side of the chart. Looking at what’s happening right now. There’s no hindsight involved. There’s no cherry picking the best trades. If they’re good winning trades, they look good. If there’s losing trades, there’s losing trades. It’s part of trading. And you can’t get away from that.

But it’s also important and one thing that I believe makes my webinars different to most others is, I show my account. I show my account historical trades and I show my account live. I show taking the trades live. I’m not saying “Oh, I’m just taking a trade on the Euro/USD selling at blah, blah, blah price.”  I don’t do that. “Oh I’ve just closed part of my trade.” I don’t do that.  I show the trade being taken live. You can see me taking the trade on my account. You can see the position size. You can see the entry price. You can see me enter my stop/loss, my profit target. You can watch the trade progress. You can see trades that I’ve got already open when the webinar starts and you can see all of the trades that I take during the session.

Learning and getting inside the mindset of a professional trader

The important thing is, one of many, one proves that I’m taking the trades and in real time and that helps you to learn because we’re discussing the trades set up. We’re scanning through the charts. Looking at different time frame charts. Looking for good set ups. So, for your point of view, it helps you to learn and get inside the mindset of a professional trader.  What I’m looking at and why I’m looking at taking this trade or not taking this trade. You know I’ll go through and say look I really love to look up at se...

Podcast:

In this video:

00:28 A great learning tool to becoming a successful Forex trader

02:02 What makes Andrew Mitchem’s webinars different?

03:06 Learning and getting inside the mindset of a professional trader

06:04 Taking trades live in front of people

Why live trading room webinars are such an important part of learning how to become a successful Forex trader

I want to share with you why attending a live trading room webinar is such an important part of becoming a successful Forex trader especially when you’re learning how to trade.

Let me tell you more right now.

Hi, this is Andrew Mitchem here the Forex Trading Coach today is Friday the 1st of November. I want to talk about live trading room webinars. It’s something that I offer my clients and it’s something I believe is so important and such a great learning tool to help you becoming a successful Forex trader. I want to tell you a few reasons why because really in my opinion there’s no better way of learning. Like I offer a video course and also live tuition and all of that is fantastic and it’s a great way to learn the basics.

But attending a live trading room webinar is something that’s a little bit different. It’s a step above everything else. But it’s important to have the right kind of webinar as well.  I mean all sorts of people offer webinars online and most of them are completely useless and boring and don’t really tell you anything.

What makes Andrew Mitchem's live trading room webinars different

What I offer for my clients is a live trading room session and I want to tell you a little bit about that. To let you know how it can help you.  You see I hold these sessions every two weeks. They’re live. They’re in the European session. I have up to a hundred clients can attend those webinars. They’re all recorded so they can be viewed at a later date.  But the important thing is that with trading live, I trade all my charts here behind me on live accounts using the software that my clients have. And we’re talking about trading in real time. That’s the important thing. We’re looking at the right hand side of the chart. Looking at what’s happening right now. There’s no hindsight involved. There’s no cherry picking the best trades. If they’re good winning trades, they look good. If there’s losing trades, there’s losing trades. It’s part of trading. And you can’t get away from that.

But it’s also important and one thing that I believe makes my webinars different to most others is, I show my account. I show my account historical trades and I show my account live. I show taking the trades live. I’m not saying “Oh, I’m just taking a trade on the Euro/USD selling at blah, blah, blah price.”  I don’t do that. “Oh I’ve just closed part of my trade.” I don’t do that.  I show the trade being taken live. You can see me taking the trade on my account. You can see the position size. You can see the entry price. You can see me enter my stop/loss, my profit target. You can watch the trade progress. You can see trades that I’ve got already open when the webinar starts and you can see all of the trades that I take during the session.

Learning and getting inside the mindset of a professional trader

The important thing is, one of many, one proves that I’m taking the trades and in real time and that helps you to learn because we’re discussing the trades set up. We’re scanning through the charts. Looking at different time frame charts. Looking for good set ups. So, for your point of view, it helps you to learn and get inside the mindset of a professional trader.  What I’m looking at and why I’m looking at taking this trade or not taking this trade.

Podcast:

In this video:

00:24   Two very specific ways to enter trades

02:01   Using limit orders

04:03   Jam packed training webinar

05:01   Non-farm payrolls released this week

Two ways to refine your Forex Trading Entries

In this video I am going to share with you two excellent ways in which you can refine you trading entries. Let me tell you more right now.

Hi it’s Andrew Mitchem here, the Forex Trading Coach. Today is Friday, the 25th of October and that’s right I want to talk about entries this time and so I have two very specific ways that I enter trades getting a better price than what you could get at the market. There’s two ways of doing this and it depends on the time frame of the chart that you’re trading. One thing that I like to do if I’m trading let’s say on an hourly chart and I see a very strong bullish setup. What I sometimes do is I then scale down to a five minute chart or even a one minute chart and look for a refined entry so what I’m doing then is I’m looking for pull back first on the one or five minute chart then I’m looking for a bullish candle with a bounce off a certain level like a round number or a pivot point or something like that looking for that really sharp entry, looking to go long.

How to trade with a small stop loss

If it’s bouncing off let’s say the round number I can have a very, very tight stop loss on that trade and therefore I can make an excellent profit on the trade without too much movement. I’ll give you an example this week I’ve taken three trades that way. I’ve seen good setups on the one hour charts, refined down to a one minute chart and look for the entries. All three trades that I’ve taken have made full profit and all three have averaged a two to one risk to reward. So if I was to trade with half of one percent risk on each of those three trades that’s over a three percent gain on my account this week just from those three trades, so huge return.

Using Limit orders to enter

The other way that I trade and which means that you don’t need to be at your computer is I use limit orders. I’m a big fan of using buy limit and sell limit orders. Now I do this mostly on the four hourly charts and the daily charts. So what it means is if I see a set up that I really like. I place let’s say, the four hour chart I’m looking for a bullish signal. I placing a buy limit so I’m not buying right up here at the market I’m buying if the price retraces first, if it retraces I’m buying at a better entry price that means. That my stop loss is naturally going to be smaller which means that the market doesn’t need to move so far in order to give me a good risk to reward out of the trade.

6.5% gain this week

Now I’ve taken two trades just yesterday on the four hourly charts and both of them hit profit and the two of them averaged a 2.5 risk to reward each. So, again its excellent returns. Half a percent on each of those two trades gives me a two and a half percent gain on my account. So you can see from this week alone just on those five trades there’s been a five percent return on my account this week. That’s without any other trades that’s without looking at the daily charts or any other time frame charts at all and in fact my breakout system that I use on a Monday also made one and a half percent so it’s been a fantastic week up over six and a half percent from just a small handful of trades.

The great thing with the limit orders means you don’t need to be there watching the market waiting for that actually pull the trigger to take the entry because my broker has my entry level already placed onto their system. If the market takes off and does not retrace then I have the trade automatically set to expire after X number of hours. So two really good ways there of entering at a better price then you would get if you were entering straight at the market.

Podcast:

In this video:

00:24   Two very specific ways to enter trades

02:01   Using limit orders

04:03   Jam packed training webinar

05:01   Non-farm payrolls released this week

Two ways to refine your Forex Trading Entries

In this video I am going to share with you two excellent ways in which you can refine you trading entries. Let me tell you more right now.

Hi it’s Andrew Mitchem here, the Forex Trading Coach. Today is Friday, the 25th of October and that’s right I want to talk about entries this time and so I have two very specific ways that I enter trades getting a better price than what you could get at the market. There’s two ways of doing this and it depends on the time frame of the chart that you’re trading. One thing that I like to do if I’m trading let’s say on an hourly chart and I see a very strong bullish setup. What I sometimes do is I then scale down to a five minute chart or even a one minute chart and look for a refined entry so what I’m doing then is I’m looking for pull back first on the one or five minute chart then I’m looking for a bullish candle with a bounce off a certain level like a round number or a pivot point or something like that looking for that really sharp entry, looking to go long.

How to trade with a small stop loss

If it’s bouncing off let’s say the round number I can have a very, very tight stop loss on that trade and therefore I can make an excellent profit on the trade without too much movement. I’ll give you an example this week I’ve taken three trades that way. I’ve seen good setups on the one hour charts, refined down to a one minute chart and look for the entries. All three trades that I’ve taken have made full profit and all three have averaged a two to one risk to reward. So if I was to trade with half of one percent risk on each of those three trades that’s over a three percent gain on my account this week just from those three trades, so huge return.

Using Limit orders to enter

The other way that I trade and which means that you don’t need to be at your computer is I use limit orders. I’m a big fan of using buy limit and sell limit orders. Now I do this mostly on the four hourly charts and the daily charts. So what it means is if I see a set up that I really like. I place let’s say, the four hour chart I’m looking for a bullish signal. I placing a buy limit so I’m not buying right up here at the market I’m buying if the price retraces first, if it retraces I’m buying at a better entry price that means. That my stop loss is naturally going to be smaller which means that the market doesn’t need to move so far in order to give me a good risk to reward out of the trade.

6.5% gain this week

Now I’ve taken two trades just yesterday on the four hourly charts and both of them hit profit and the two of them averaged a 2.5 risk to reward each. So, again its excellent returns. Half a percent on each of those two trades gives me a two and a half percent gain on my account. So you can see from this week alone just on those five trades there’s been a five percent return on my account this week. That’s without any other trades that’s without looking at the daily charts or any other time frame charts at all and in fact my breakout system that I use on a Monday also made one and a half percent so it’s been a fantastic week up over six and a half percent from just a small handful of trades.

The great thing with the limit orders means you don’t need to be there watching the market waiting for that actually pull the trigger to take the entry because my broker has my entry level already placed onto their system. If the market takes off and does not retrace then I have the trade automatically set to expire after X number of hours. So two really good ways there of entering at a better price then you would get if you were entering straight at...

Podcast:

In this video:

00:32     What is the best timeframe chart to trade?

03:06     5.8% return on two trades

06:18     A huge weakness in the USD

What is the best time frame chart to trade Forex?

What’s the best time frame chart to trade? What suits you? Well let’s talk about that right now in this video.

Hi it’s Andrew Mitchem here the Forex Trading Coach. Welcome along today is Friday the 17th of October 2013 and that’s right I want to talk about the timeframe of charts. See behind me here I have three different timeframe charts open – ones on the daily charts, ones on the four hourly and ones on the one hourly. What is the best timeframe chart to trade? Everybody is also looking for the best strategy but what is the actual best timeframe? And really the answer is that it depends on what suits you because there is no right or wrong way and let me explain exactly what I mean.

Weekly Chart Trading

I held a live two and a half hour webinar for my clients last night my time in the European session and we had people from all sorts of different countries around the world. I want to talk about that three people. The first one actually wasn’t on because he was working. He lives in Noosa over in Australia. He was actually my very first client, my coaching client back in early 2009 and this person, he owns a restaurant and he’s also a chef so he’s a full time chef and a restaurant owner in beautiful Noosa over in Australia in the Sunshine Coast. Lovely place, got to go there if you’re not been there. He works days and nights being a chef and so he trades weekly charts. He just look at the charts once a week for about fifteen, twenty minutes on a Monday morning his time looking through the weekly charts. Places his trades if there any there puts away, leaves his trades, that’s it for the week that’s this trading. He trades about an average of only 100 trades per year but it still does really well and it’s what suits him.

5 and 15 Minute Charts

We then take to the other extreme and we had Robert from over in Oregon in the US on the webinar last night early hours in the morning for him and gets up to my webinar because he just learned so much information. It was great sharing that information that he knows also about the five minute charts. Now he took two trades on the British Pound/USD yesterday and his trading style is to look for just the major pairs with the tightest spreads on the five minute charts sometimes the fifteen minute charts in the first two hours of the Asian session and the first two hours of the European session. And he took two trades and shared those two trades yesterday both on the British Pound USD, both buy trades trading with the longer term trend but on the short five minutes charts because that’s what suits him.

5.8% return in just 2 trades

One trade made a 2.8 risk to reward and the other made a 3 to 1 risk to reward. So if you are risking let’s say 1% of your account on each of those two trades because they’re both taken separately when one is close when the other one are opened. That would have been a 5.8% return by risking 1% on each of those two trades – that’s a huge return Robert actually only traded on half percent for a +2.9% gain on his account by risking only half of 1% on each of those two trades. And like Robert said that’s more than his bank will pay him in the States in the entire year and he made that just out of two trades on the five minute charts just yesterday. So it shows what it can be done.

4 Hour and 1 Hour charts

I had another person on the webinar, Pete was there, and Pete was on his first webinar and he said,

Podcast:

In this video:

00:32     What is the best timeframe chart to trade?

03:06     5.8% return on two trades

06:18     A huge weakness in the USD

What is the best time frame chart to trade Forex?

What’s the best time frame chart to trade? What suits you? Well let’s talk about that right now in this video.

Hi it’s Andrew Mitchem here the Forex Trading Coach. Welcome along today is Friday the 17th of October 2013 and that’s right I want to talk about the timeframe of charts. See behind me here I have three different timeframe charts open – ones on the daily charts, ones on the four hourly and ones on the one hourly. What is the best timeframe chart to trade? Everybody is also looking for the best strategy but what is the actual best timeframe? And really the answer is that it depends on what suits you because there is no right or wrong way and let me explain exactly what I mean.

Weekly Chart Trading

I held a live two and a half hour webinar for my clients last night my time in the European session and we had people from all sorts of different countries around the world. I want to talk about that three people. The first one actually wasn’t on because he was working. He lives in Noosa over in Australia. He was actually my very first client, my coaching client back in early 2009 and this person, he owns a restaurant and he’s also a chef so he’s a full time chef and a restaurant owner in beautiful Noosa over in Australia in the Sunshine Coast. Lovely place, got to go there if you’re not been there. He works days and nights being a chef and so he trades weekly charts. He just look at the charts once a week for about fifteen, twenty minutes on a Monday morning his time looking through the weekly charts. Places his trades if there any there puts away, leaves his trades, that’s it for the week that’s this trading. He trades about an average of only 100 trades per year but it still does really well and it’s what suits him.

5 and 15 Minute Charts

We then take to the other extreme and we had Robert from over in Oregon in the US on the webinar last night early hours in the morning for him and gets up to my webinar because he just learned so much information. It was great sharing that information that he knows also about the five minute charts. Now he took two trades on the British Pound/USD yesterday and his trading style is to look for just the major pairs with the tightest spreads on the five minute charts sometimes the fifteen minute charts in the first two hours of the Asian session and the first two hours of the European session. And he took two trades and shared those two trades yesterday both on the British Pound USD, both buy trades trading with the longer term trend but on the short five minutes charts because that’s what suits him.

5.8% return in just 2 trades

One trade made a 2.8 risk to reward and the other made a 3 to 1 risk to reward. So if you are risking let’s say 1% of your account on each of those two trades because they’re both taken separately when one is close when the other one are opened. That would have been a 5.8% return by risking 1% on each of those two trades – that’s a huge return Robert actually only traded on half percent for a +2.9% gain on his account by risking only half of 1% on each of those two trades. And like Robert said that’s more than his bank will pay him in the States in the entire year and he made that just out of two trades on the five minute charts just yesterday. So it shows what it can be done.

4 Hour and 1 Hour charts

I had another person on the webinar, Pete was there,

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,

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.