Podcast:

In this video:

00:24    The psychology behind trading

01:48    Understanding what’s happening in the market

03:58    Trading knowledge posted for free at Forex Peace Army

06:07    Setting of rules and a structure for successful trading

07:08    Made 3.7 Reward:Risk on a one hour chart trade

 

Do you have the right mind set to be a successful Forex Trader? 

Do you have the right mind set to be a successful Forex Trader? Let me show more details with you right now.

Hi it’s Andrew Mitchem here the Forex Trading Coach and today I want to talk about having the correct mind set in order to be a successful Forex Trader. You see the whole psychology behind trading is something that’s almost like a bit of a dull subject, it’s not that particularly interesting and it’s the part of any strategy or any course and eBook that people to skip over because you want to get the nitty gritty, you want to get to the actual strategy itself. But I’m here to tell you that there are so many people that I get emails from, phone correspondents, have Skype conversations with or have met in person that really are not the right sort people who should be trading and it’s important for you to understand that you need to have the right mind set in order to be a successful Forex Trader.

I want to share to you some examples of what you do need in order to be a good trader.  It’s not for everybody regardless of how fantastic a market it is and all the lifestyle benefits and the passive income benefits that Forex Trading offers, it really is not for everybody. So you need to be sure that this is the right thing.

Do you have a Passion for trading Forex?

Number one I suppose you also need to have a passion for it. You really need to be excited by Forex Trading what’s going on at the charts here behind me. It’s going to be something that you’re really interested in. When it’s the weekends I can’t trade and I almost upset that I can’t trade. Most people when it gets to weekend you know they’re all fantastic, you know it’s Friday night, no more work for two days. For me it’s the opposite because I love trading. It’s the same at the beginning of the week, you know I’m really buzzing; I’m really excited again because I can get back into trading again.

So you got to be passionate about it and understand what’s happening in the markets and what the charts are telling you and have a real interest in it because that’s number one importance but when it comes to the mind set you got to be consistent  person. You can’t be erratic jumping from different charts, at different charts trading different times of the day, different timeframes. You know there are so many people that will say to me, “Hi Andrew, what would be the benefit of adding an ABC indicator to your system?” I say, “You don’t need to, you know don’t reinvent the wheel.”

So many people find with any strategy that all of a sudden if it doesn’t work for one or two trades or one or two days then they’ll start optimizing it. They’ll then start adding another indicator or another something to that strategy to try and change it because you have to think as an investor. Don’t forget, that good Forex Trading is not a get rich quick scheme, it really isn’t. If that’s your mind set if you think that you’re going to want it double your account every couple of months, don’t trade Forex. Well certainly don’t ask me to help to teach you because I don’t want that sort of person as a client. Because I know the end result is almost certainly failure. Sorry to be blunt but if you’re the sort of person that says “I only got $500 and therefore I need to trade at like three standard lots per trade because I need to make more money” you’re the wrong sort of person. You shouldn’t be doing it.

 

Podcast:

In this video:

00:24    The psychology behind trading

01:48    Understanding what’s happening in the market

03:58    Trading knowledge posted for free at Forex Peace Army

06:07    Setting of rules and a structure for successful trading

07:08    Made 3.7 Reward:Risk on a one hour chart trade

 

Do you have the right mind set to be a successful Forex Trader? 

Do you have the right mind set to be a successful Forex Trader? Let me show more details with you right now.

Hi it’s Andrew Mitchem here the Forex Trading Coach and today I want to talk about having the correct mind set in order to be a successful Forex Trader. You see the whole psychology behind trading is something that’s almost like a bit of a dull subject, it’s not that particularly interesting and it’s the part of any strategy or any course and eBook that people to skip over because you want to get the nitty gritty, you want to get to the actual strategy itself. But I’m here to tell you that there are so many people that I get emails from, phone correspondents, have Skype conversations with or have met in person that really are not the right sort people who should be trading and it’s important for you to understand that you need to have the right mind set in order to be a successful Forex Trader.

I want to share to you some examples of what you do need in order to be a good trader.  It’s not for everybody regardless of how fantastic a market it is and all the lifestyle benefits and the passive income benefits that Forex Trading offers, it really is not for everybody. So you need to be sure that this is the right thing.

Do you have a Passion for trading Forex?

Number one I suppose you also need to have a passion for it. You really need to be excited by Forex Trading what’s going on at the charts here behind me. It’s going to be something that you’re really interested in. When it’s the weekends I can’t trade and I almost upset that I can’t trade. Most people when it gets to weekend you know they’re all fantastic, you know it’s Friday night, no more work for two days. For me it’s the opposite because I love trading. It’s the same at the beginning of the week, you know I’m really buzzing; I’m really excited again because I can get back into trading again.

So you got to be passionate about it and understand what’s happening in the markets and what the charts are telling you and have a real interest in it because that’s number one importance but when it comes to the mind set you got to be consistent  person. You can’t be erratic jumping from different charts, at different charts trading different times of the day, different timeframes. You know there are so many people that will say to me, “Hi Andrew, what would be the benefit of adding an ABC indicator to your system?” I say, “You don’t need to, you know don’t reinvent the wheel.”

So many people find with any strategy that all of a sudden if it doesn’t work for one or two trades or one or two days then they’ll start optimizing it. They’ll then start adding another indicator or another something to that strategy to try and change it because you have to think as an investor. Don’t forget, that good Forex Trading is not a get rich quick scheme, it really isn’t. If that’s your mind set if you think that you’re going to want it double your account every couple of months, don’t trade Forex. Well certainly don’t ask me to help to teach you because I don’t want that sort of person as a client. Because I know the end result is almost certainly failure. Sorry to be blunt but if you’re the sort of person that says “I only got $500 and therefore I need to trade at like three standard lots per trade because I need to make more money” you’re the wrong sort of person.

Podcast:

In this video:

00:27   The secret – don't trade Mondays

01:53   The most reliable days for Forex trading

03:23   Seeing a lot of strength in the USD

04:07   Overall a good trading week with over 2.5% gain

05:32   Keeping you out of poor trades

Hi in today’s video I am going to show you how you can trade less and make more. Sounds attractive, doesn’t it?

Let’s get into it.

How You Can Trade Less and Make More

Hi it’s Andrew Mitchem here from the Forex Trading Coach. Welcome along today is Friday the 23rd of August 2013. And that is right I want to tell you how you can trade less and make more. It sounds really good; so the secret is don't trade Mondays. And so it is something that I have been contemplating for quite a while and it’s something as a trader; I still like to trade every day and but I’m learning over time that Mondays are just a such a unpredictable day. And so that is 5 p.m. Sunday when the market opens in New York time onwards but for me here in New Zealand that’s Monday morning.

And so I'm looking at stopping trading on the longer timeframe charts, on the daily charts and making strength and weakness analysis on a Monday. The problem is that when I'm doing that I'm looking at Fridays completed day and I'm also comparing Friday with Thursday at times as well. And on the Friday or many times on a Friday the US has news announcements that can affect the currencies quite a lot towards the end of the week.

The other problem of course is we have the weekend, and sentiment changes over the weekend. A lot of things globally can happen and then when the market opens up on a Sunday night American time, Monday morning Wellington time – so much could have happened. And when the market opens into the Asian session, and then European session, onto the US session things can completely change in the sentiment and the thoughts of traders; than what they were thinking back last weekend to last Thursday and Friday.

 

The Best Days To Trade Forex

So I'm finding that the most reliable days: Tuesday, Wednesday, Thursday and Friday; without a doubt. If I had to choose three out of those it would be Tuesday, Wednesday, and Thursday but Friday I'm still finding really good. Most of the time, I am closing on a Friday night my time before the US session even starts. At the very latest I'm closing before the end of the week, but if you want to have some more time have yourself a three day weekend.

You know how fantastic would that be just to have three days; Sunday, Saturday, Monday no trades at all. If you do want to trade on Mondays then I'm generally looking at the shorter timeframe charts, and actually trading what you see  occur at the time without too many preconceived ideas of where the currency should be going. Let the market decide and let the sentiment do its thing for the beginning of the new week and then as giving your guide heading into Tuesday onwards where the currencies the strengths and weaknesses and different currencies are likely to be heading later into the week. So that just save you a full days trading; made you a four day trader then that's just a great thing to happen.

 

A Great USD/CAD H1 Chart Trade with a 2.2:1 Reward:Risk

The other thing I want to talk about is the webinar that I held yesterday for my clients. I took four live trades myself during the webinar and had a trade on the USD/CAD just closed right now for 2.2 risk to reward trade. It was taken on the hourly chart trading in the direction of the daily so trading buy position on the US cad because I could see a lot of strength in the USD and a lot of weakness in the CAD. Put the 2 together and I was looking for the buy trades on the U...

Podcast:

In this video:

00:27   The secret – don't trade Mondays

01:53   The most reliable days for Forex trading

03:23   Seeing a lot of strength in the USD

04:07   Overall a good trading week with over 2.5% gain

05:32   Keeping you out of poor trades

Hi in today’s video I am going to show you how you can trade less and make more. Sounds attractive, doesn’t it?

Let’s get into it.

How You Can Trade Less and Make More

Hi it’s Andrew Mitchem here from the Forex Trading Coach. Welcome along today is Friday the 23rd of August 2013. And that is right I want to tell you how you can trade less and make more. It sounds really good; so the secret is don't trade Mondays. And so it is something that I have been contemplating for quite a while and it’s something as a trader; I still like to trade every day and but I’m learning over time that Mondays are just a such a unpredictable day. And so that is 5 p.m. Sunday when the market opens in New York time onwards but for me here in New Zealand that’s Monday morning.

And so I'm looking at stopping trading on the longer timeframe charts, on the daily charts and making strength and weakness analysis on a Monday. The problem is that when I'm doing that I'm looking at Fridays completed day and I'm also comparing Friday with Thursday at times as well. And on the Friday or many times on a Friday the US has news announcements that can affect the currencies quite a lot towards the end of the week.

The other problem of course is we have the weekend, and sentiment changes over the weekend. A lot of things globally can happen and then when the market opens up on a Sunday night American time, Monday morning Wellington time – so much could have happened. And when the market opens into the Asian session, and then European session, onto the US session things can completely change in the sentiment and the thoughts of traders; than what they were thinking back last weekend to last Thursday and Friday.

 

The Best Days To Trade Forex

So I'm finding that the most reliable days: Tuesday, Wednesday, Thursday and Friday; without a doubt. If I had to choose three out of those it would be Tuesday, Wednesday, and Thursday but Friday I'm still finding really good. Most of the time, I am closing on a Friday night my time before the US session even starts. At the very latest I'm closing before the end of the week, but if you want to have some more time have yourself a three day weekend.

You know how fantastic would that be just to have three days; Sunday, Saturday, Monday no trades at all. If you do want to trade on Mondays then I'm generally looking at the shorter timeframe charts, and actually trading what you see  occur at the time without too many preconceived ideas of where the currency should be going. Let the market decide and let the sentiment do its thing for the beginning of the new week and then as giving your guide heading into Tuesday onwards where the currencies the strengths and weaknesses and different currencies are likely to be heading later into the week. So that just save you a full days trading; made you a four day trader then that's just a great thing to happen.

 

A Great USD/CAD H1 Chart Trade with a 2.2:1 Reward:Risk

The other thing I want to talk about is the webinar that I held yesterday for my clients. I took four live trades myself during the webinar and had a trade on the USD/CAD just closed right now for 2.2 risk to reward trade. It was taken on the hourly chart trading in the direction of the daily so trading buy position on the US cad because I could see a lot of strength in the USD and a lot of weakness in the CAD.

Podcast:

In this video:

00:25 Something to keep a good eye at for on your technical charts – Exhaustion Candles

01:48 Look at my Product’s page to help you trade

03:27 Trade what you see and not what you think

05:40 How to help you gain like 4% for the week

06:53 95% new clients took the online video course

In this video I want to tell you all about exhaustion candles and why you should look out for them in your trading.

Exhaustion Candles – What they mean and why you should look for them in your trading

Hi again its Andrew Mitchem here in the Foreign Exchange Trading Coach Today is Friday the 16th of August. I want to talk about exhaustion candles. Something I said on last weeks video, I talked about on this weeks video and its something you really need to keep a good eye out for on your technical charts and they do help you with the trading. I talked about this a lot on my live 2 hour webinar with my clients last Thursday and its something I want to share with you now.

Now exhaustion candles are not something you can take an actual trade on, a new trade, but they do give you an enormous amount of information and give a lot of clues about what is happening in the market and what the sentiment is in the market right now. Are there more buyers, are there more sellers, what is happening. Really the exhaustion candles and the indecision candles mean there is likely to be a stalling in the current trend. Now that doesn’t always mean to say there is going to be a complete reversal in the trend we still need confirmation to back that up and justify that thought but there are several ways you can use the exhaustion candles. Of course you still need them to have them occur at the right part of the charts so you are looking at bouncing at round numbers or pivot points, previous highs and lows etc. So its not just an indecision candle is the same as the next one and its all to do with the quality of the candle and where it appears in the chart. And that is something I teach extensively in my course and help my clients with. If it is something you would like to know please have a look through my website. Look at my Products page and look at the information there regarding the course and how I can help you trade.

A Clue to what may be happening in the Market

Basically an indecision candle says that neither the buyers nor sellers want what is within that candle. An exhaustion candles tells us we are likely to see a trend stalling. If we didn’t get a confirmation let’s say in a buy in an uptrend and we  get an indecision or an exhaustion candle at a round number lets say and then we get a confirmation candle to go short, that gives us our exhaustion then our confirmation. You may just find with the indecision candle the markets are stalling after previous moves it may stall and then you get the confirmation to continue the trend upwards. So use the exhaustion and indecision candles to give you a clue of what may be coming next.

If your already in an existing trade and the indecision or exhaustion candle happens at a previous swing high and happens to be a round number then that could give you a clue as this market may be reversing. Now is the time to close part of the trade or all of the trade especially on a shorter time frame charts because the market may just be turning around and my profit target is up here and still not been reached yet and may not be actually be hit. So use those candles. Go back again and look at the charts see indecision, Doji style candles, pin bars, hanging man candles,

Podcast:

In this video:

00:25 Something to keep a good eye at for on your technical charts – Exhaustion Candles

01:48 Look at my Product’s page to help you trade

03:27 Trade what you see and not what you think

05:40 How to help you gain like 4% for the week

06:53 95% new clients took the online video course

In this video I want to tell you all about exhaustion candles and why you should look out for them in your trading.

Exhaustion Candles – What they mean and why you should look for them in your trading

Hi again its Andrew Mitchem here in the Foreign Exchange Trading Coach Today is Friday the 16th of August. I want to talk about exhaustion candles. Something I said on last weeks video, I talked about on this weeks video and its something you really need to keep a good eye out for on your technical charts and they do help you with the trading. I talked about this a lot on my live 2 hour webinar with my clients last Thursday and its something I want to share with you now.

Now exhaustion candles are not something you can take an actual trade on, a new trade, but they do give you an enormous amount of information and give a lot of clues about what is happening in the market and what the sentiment is in the market right now. Are there more buyers, are there more sellers, what is happening. Really the exhaustion candles and the indecision candles mean there is likely to be a stalling in the current trend. Now that doesn’t always mean to say there is going to be a complete reversal in the trend we still need confirmation to back that up and justify that thought but there are several ways you can use the exhaustion candles. Of course you still need them to have them occur at the right part of the charts so you are looking at bouncing at round numbers or pivot points, previous highs and lows etc. So its not just an indecision candle is the same as the next one and its all to do with the quality of the candle and where it appears in the chart. And that is something I teach extensively in my course and help my clients with. If it is something you would like to know please have a look through my website. Look at my Products page and look at the information there regarding the course and how I can help you trade.

A Clue to what may be happening in the Market

Basically an indecision candle says that neither the buyers nor sellers want what is within that candle. An exhaustion candles tells us we are likely to see a trend stalling. If we didn’t get a confirmation let’s say in a buy in an uptrend and we  get an indecision or an exhaustion candle at a round number lets say and then we get a confirmation candle to go short, that gives us our exhaustion then our confirmation. You may just find with the indecision candle the markets are stalling after previous moves it may stall and then you get the confirmation to continue the trend upwards. So use the exhaustion and indecision candles to give you a clue of what may be coming next.

If your already in an existing trade and the indecision or exhaustion candle happens at a previous swing high and happens to be a round number then that could give you a clue as this market may be reversing. Now is the time to close part of the trade or all of the trade especially on a shorter time frame charts because the market may just be turning around and my profit target is up here and still not been reached yet and may not be actually be hit. So use those candles. Go back again and look at the charts see indecision, Doji style candles, pin bars, hanging man candles,

Podcast:

 

In this video I talk through the price levels you should avoid trading into and doing this will dramatically increase the likelihood of your trades working. 

 

In this video:

00:57  The importance of not trading into round numbers

02:20  How to increase the likelihood of your trades from working

03:15  Seeing some strength in the GBP and the JPY

04:36  4 webinar times to choose from each week

In this video I’m going to talk about what price levels you should avoid trading into.

So let’s get into it.

Hi this is Andrew Mitchem here, the Forex Trading Coach, welcome along. Today is Friday, the 9th of August and that’s right I’m going to be talking about what price levels you should actually avoid trading into. I’m going to be talking about support and resistance levels but so many people talk about support and resistance and really when it comes to looking at that on a live chart what on earth do people mean. You know, there are so many different variables by what you could mean by the word support and resistance so I like to make things an absolute. I do look at support and resistance levels. I look at pivot points. I look at candles swing highs, swing lows etc. All of that is really important but the thing I want to concentrate talking about on this video and really share with you because it’s such valuable information is talking about the importance of not trading into round numbers.

Round Numbers and Why You Should Use Them In Your Trading

Round numbers are something that I call a number that ends in a double zero or a fifty (00 or 50). Go ahead and have a look at your charts and you will see that time and time again that every time that the price goes up to a certain level and stalls or bounces it usually bounces at a round number. So let’s say for instance, the NZD would bounce at 0.8000 or it may come down to 0.7900 or it might then bounce at 0.8050. So always look for those 50’s or those 00’s on whatever currency pay you’re looking at, whatever time frame.

So when at the beginning I’m calling this video “What you should avoid trading into?” What you don’t want to be doing let’s say, take a by position on the NZD at 0.7995 let’s say. You’re buying right into that round number, that huge resistance level caused by that round number. The opposite, if you’re selling, let’s say that the NZD against the US was 0.8010 or 0.8005 or somewhere round about that you wouldn’t want to be selling, trading into that round number. So that’s what I mean by levels that you should avoid buying or selling into. Keep that out of your trading and that will dramatically increase the likelihood of your trades from working.

 

Use Round Numbers To Help With Your Profit Targets and Stop Losses

The same thing when you are looking at profit targets.  Don’t take a profit target let’s say I’m buying at 0.7910 and taking a profit target at 0.8005 or 0.8010. That’s just crazy. What you want to be doing is getting out of the trade before that psychological round number of the 0.8000. So get out of the trade at 0.7990 or 0.7995, somewhere around that if you are buying and looking for a profit target.

Again, go back and look at the charts. Just go over and over charts. Look at those levels; draw them on as horizontal lines. That’s why I love them, because the horizontal lines that anybody can draw on the charts. It’s not subjective like other things maybe like indicators or even trend lines. Horizontal lines are horizontal lines. What you see is the same as what I see. So use those within your trading.

Whats Been Happening On The Charts This Week?

Now on the charts this week we have seen some weakness in the USD and we are seeing some strength in the GBP and the JPY. Today being Friday the JPY looks like it is retracing slightly so some weakness comin...

Podcast:

 

In this video I talk through the price levels you should avoid trading into and doing this will dramatically increase the likelihood of your trades working. 

 

In this video:

00:57  The importance of not trading into round numbers

02:20  How to increase the likelihood of your trades from working

03:15  Seeing some strength in the GBP and the JPY

04:36  4 webinar times to choose from each week

In this video I’m going to talk about what price levels you should avoid trading into.

So let’s get into it.

Hi this is Andrew Mitchem here, the Forex Trading Coach, welcome along. Today is Friday, the 9th of August and that’s right I’m going to be talking about what price levels you should actually avoid trading into. I’m going to be talking about support and resistance levels but so many people talk about support and resistance and really when it comes to looking at that on a live chart what on earth do people mean. You know, there are so many different variables by what you could mean by the word support and resistance so I like to make things an absolute. I do look at support and resistance levels. I look at pivot points. I look at candles swing highs, swing lows etc. All of that is really important but the thing I want to concentrate talking about on this video and really share with you because it’s such valuable information is talking about the importance of not trading into round numbers.

Round Numbers and Why You Should Use Them In Your Trading

Round numbers are something that I call a number that ends in a double zero or a fifty (00 or 50). Go ahead and have a look at your charts and you will see that time and time again that every time that the price goes up to a certain level and stalls or bounces it usually bounces at a round number. So let’s say for instance, the NZD would bounce at 0.8000 or it may come down to 0.7900 or it might then bounce at 0.8050. So always look for those 50’s or those 00’s on whatever currency pay you’re looking at, whatever time frame.

So when at the beginning I’m calling this video “What you should avoid trading into?” What you don’t want to be doing let’s say, take a by position on the NZD at 0.7995 let’s say. You’re buying right into that round number, that huge resistance level caused by that round number. The opposite, if you’re selling, let’s say that the NZD against the US was 0.8010 or 0.8005 or somewhere round about that you wouldn’t want to be selling, trading into that round number. So that’s what I mean by levels that you should avoid buying or selling into. Keep that out of your trading and that will dramatically increase the likelihood of your trades from working.

 

Use Round Numbers To Help With Your Profit Targets and Stop Losses

The same thing when you are looking at profit targets.  Don’t take a profit target let’s say I’m buying at 0.7910 and taking a profit target at 0.8005 or 0.8010. That’s just crazy. What you want to be doing is getting out of the trade before that psychological round number of the 0.8000. So get out of the trade at 0.7990 or 0.7995, somewhere around that if you are buying and looking for a profit target.

Again, go back and look at the charts. Just go over and over charts. Look at those levels; draw them on as horizontal lines. That’s why I love them, because the horizontal lines that anybody can draw on the charts. It’s not subjective like other things maybe like indicators or even trend lines. Horizontal lines are horizontal lines. What you see is the same as what I see. So use those within your trading.

Whats Been Happening On The Charts This Week?

Now on the charts this week we have seen some weakness in the USD and we are seeing some strength in the GBP and the JPY.

Podcast:

In this video:

00:20     Trade what you see on the charts

01:02     Great opportunities to go short on the AUD against the USD

02:28     USD today is looking very strong

05:04     How to be a good currency trader

In this video, I want to talk about trading; what you see, not what you think.

So, let’s get into it.

Trade What You See On Your Charts – and Not What You Think

Hi, this is Andrew Mitchem here, the Forex Trading Coach.  Today is Friday, the 2nd of August, and it’s non-farm payrolls day yet again.  But before talking about the non-farm payrolls, I want to talk about, actually, how you read the charts.  There’s a common problem that many people have, it’s they think too much about their trading in terms of the fundamentals.  This came about, I was talking to a person earlier in the week who’s looking at taking my course, and he said to me, “Andrew, you know I’m just concentrating so much on the news, on what’s out there, and I’m missing these moves. How do I overcome that?”  And he was explaining to me how he’s missed all of this huge down trend that’s occurred on the AUD recently.

Now, if you look back on your charts into about April, the AUD against the USD has dropped over sixteen hundred pips, and even in the last week or so, it’s dropped more than four hundred pips so, some great opportunities to go short on the AUD against the USD.  In fact, the Aussie against almost every other currency, there’s been great opportunities to go short recently.  And if you’ve been following my daily strength and weakness analysis, you’ve been seeing that I’ve been mentioning short positions on the Aussie dollar for quite a number of weeks now on most days.  But, this particular person was saying, you know, I’m reading the news, I’m sort of getting e-mails, I’m looking at sort of Forex sites online, I’m watching business news channels, I’m reading it in the newspapers, and this guy was in Australia, and he’s saying, I’m just thinking that the Australian dollars going to go up, and as a result, I’ve missed this entire down trend.

Exactly the same thought process he was telling me on gold.  You know, everybody was saying a couple of years ago, gold and silver’s going to go up and up and up and up, and so every opportunity to go short on gold or silver he’s missed as well.  So, it comes back to the phrase that I’ve used so many times, I’ve used it on these videos, also I’m going to use it on my clients; trade what you see, and not what you think.

I’ll give you another example.   In around twelve hours’ time from right now we have the non-farm payrolls, it being the first Friday of the month, and who knows what the announcements going to say, but I can see right now on my charts that the USD today is looking very strong.  There’s some weakness in the JPY, and there’s also minor weakness in the NZD and Swiss franc.  So, for me, right now, I’m predicting that the USD is likely to keep continuing upwards, therefore you’d expect that  the non-farm payroll announcements probably going to be better than anticipated.

Why Fundamental Trading is Difficult

That’s what the charts are telling me.   But, also think of this, let’s say the dollar does come out way higher than expected, there’s two ways of thinking of it, because whatever the news comes out, whether it be good or bad, there’s always a human interpretation of that news.  So, the news may come out at fifty thousand jobs more than anticipated, let’s say for example, and you may get a whole group of investors and traders that say fantastic, the US is booming because the employment’s just jumped up fifty thousand jobs more than the experts anticipate.

So, therefore, they’re looking at strength in the USD.  On the other side,

Podcast:

In this video:

00:20     Trade what you see on the charts

01:02     Great opportunities to go short on the AUD against the USD

02:28     USD today is looking very strong

05:04     How to be a good currency trader

In this video, I want to talk about trading; what you see, not what you think.

So, let’s get into it.

Trade What You See On Your Charts – and Not What You Think

Hi, this is Andrew Mitchem here, the Forex Trading Coach.  Today is Friday, the 2nd of August, and it’s non-farm payrolls day yet again.  But before talking about the non-farm payrolls, I want to talk about, actually, how you read the charts.  There’s a common problem that many people have, it’s they think too much about their trading in terms of the fundamentals.  This came about, I was talking to a person earlier in the week who’s looking at taking my course, and he said to me, “Andrew, you know I’m just concentrating so much on the news, on what’s out there, and I’m missing these moves. How do I overcome that?”  And he was explaining to me how he’s missed all of this huge down trend that’s occurred on the AUD recently.

Now, if you look back on your charts into about April, the AUD against the USD has dropped over sixteen hundred pips, and even in the last week or so, it’s dropped more than four hundred pips so, some great opportunities to go short on the AUD against the USD.  In fact, the Aussie against almost every other currency, there’s been great opportunities to go short recently.  And if you’ve been following my daily strength and weakness analysis, you’ve been seeing that I’ve been mentioning short positions on the Aussie dollar for quite a number of weeks now on most days.  But, this particular person was saying, you know, I’m reading the news, I’m sort of getting e-mails, I’m looking at sort of Forex sites online, I’m watching business news channels, I’m reading it in the newspapers, and this guy was in Australia, and he’s saying, I’m just thinking that the Australian dollars going to go up, and as a result, I’ve missed this entire down trend.

Exactly the same thought process he was telling me on gold.  You know, everybody was saying a couple of years ago, gold and silver’s going to go up and up and up and up, and so every opportunity to go short on gold or silver he’s missed as well.  So, it comes back to the phrase that I’ve used so many times, I’ve used it on these videos, also I’m going to use it on my clients; trade what you see, and not what you think.

I’ll give you another example.   In around twelve hours’ time from right now we have the non-farm payrolls, it being the first Friday of the month, and who knows what the announcements going to say, but I can see right now on my charts that the USD today is looking very strong.  There’s some weakness in the JPY, and there’s also minor weakness in the NZD and Swiss franc.  So, for me, right now, I’m predicting that the USD is likely to keep continuing upwards, therefore you’d expect that  the non-farm payroll announcements probably going to be better than anticipated.

Why Fundamental Trading is Difficult

That’s what the charts are telling me.   But, also think of this, let’s say the dollar does come out way higher than expected, there’s two ways of thinking of it, because whatever the news comes out, whether it be good or bad, there’s always a human interpretation of that news.  So, the news may come out at fifty thousand jobs more than anticipated, let’s say for example, and you may get a whole group of investors and traders that say fantastic, the US is booming because the employment’s just jumped up fifty thousand jobs more than the experts anticipate.

So, therefore, they’re looking at strength in the USD.