Podcast:

What trading information do you need to know? - Andrew Mitchem talks Forex

In this video:

00:28 – What’s happening in the world right now and how you can use that information

00:43 – Another recession on the way soon?

01:06 – The charts tell me all I need to know

01:30 – Have a look at your Forex charts and see these trades

02:35 - Big moves, reversal trades and some excellent trades

04:10 – A technical trader watched the charts and acts upon that information

04:44 – I’m speaking in Hong Kong at the iFX Trading Expo 26-28th January

As a forex trader, there's so much information to try and understand, so how do you know what is the best information to read and how do you understand it? Let's talk about that and more right now.

Hi forex traders, it's Andrew Mitchem here, the Forex Trading Coach, and in today's video and podcast.

What’s happening in the world right now and how you can use that information

I want to talk about what's happening in the world right now within the news, the whole global economy, and how you can read and understand that information, absorb it, and then take that through to your trading and make some money out of the currency market. It's quite difficult, there's so much information out there. From what I can gather right now, there's a lot of doom and gloom out there.

Another recession on the way soon?

They're talking about another recession coming, oil's getting lower and lower, it hit $30 and it's now gone down lower. Potentially 20 is now the next level. Commodity currencies like the New Zealand dollar, the Aussie, and especially the Canadian dollar are getting an absolute hammering. You're just trying to read all that information, absorb it, and think "How can I best trade?"

The charts tell me all I need to know

For me, as a technical trader, I like to trade what I see on the charts and I'll give you some examples why, because so many people out there say "Andrew, you need to understand these fundamentals, and you have to use that information." Yes, you can use that information, but you've got to be really careful that it doesn't overtake what you think becomes the absolute. You've got to actually see what's happening rather than just thinking this is going to be happening.

Have a look at your Forex charts and see these trades

The examples that I wanted to share with you are some trades that I took just yesterday on Thursday. Go and have a look at your charts for Thursday the 21st of January. I shared some of these trades with my clients on the membership site and I also discussed them on my live webinar with clients just last night. As an example, the euro Canadian dollar has moved to over 2000 pips since the beginning of December. I took a sale trade on the euro Canadian dollar yesterday, it's gone up and up and up. Just have a look at the charts, it's a massive upward movement.

Most people would look at thinking "Yeah, the Canadian dollar's getting absolutely hammered, so why on Earth would you want to be taking a sale trade on the euro CAD, which is effectively saying weakness in the euro and some strength in the Canadian dollar." That is exactly what happened. I only took that trade because I saw the setups showing on the charts. I'm not to say that I'm taking complete reversals against 2000 pip movements all the time, I'd much rather wait for a pullback and then ride it back up again, because long-term it still looks like it's about to go up further.

Big moves, reversal trades and some excellent trades

However, there was a great reversal trade setting up, and there was a great opportunity to make some money on that pullback or on the retracement because, as you know,