Podcast:

In this video:

00:29     Having some form of trading plan in place

02:30     Seeing fourteen currency pairs with definite strength and weakness

04:23     A sell trade made a full profit

06:15     My new website

Today I want to talk about why you need a trading plan to be a successful Forex Trader. Let’s talk about that right now.

Why you need a good trading plan to help you become a successful Forex trader

Hi it’s Andrew Mitchem here the Forex Trading Coach. Welcome along today is Friday the 20th of September. And I want to talk about having a trading plan because you see it’s something that so many people don’t have. Even if it’s a simple piece of paper pinned to your wall behind your screen you need to have some form of trading plan in place. For instance if you’re going to go by a business or a car or a house or go to school, university, you’d had a plan in place and trading is no different. You need to have a plan of how you’re going to trade, what times of the day you’re looking at trading, what time frames, any specifics in terms of the number of trades you might take, the total amount you might have exposed into the market at any one time. Whatever it is you need to have that written down  so that you can refer to that throughout the course of the day and you’ll be amazed if you do that and stick to your rules within your trading. What it will do is it will help eliminate a lot of those losing trades.

I’ll give you an example, I broke my rules once last week and I was talking about this on my webinar last night with my clients and I aimed for a slightly higher profit target than I should have using my rules and it bit me. Look, the trade would have got there and taken my standard profit target quite easily and made just over 2 to 1 risk to reward and I saw another level I broke my rules, the market came back stopped me out first and then went on to where my profit target was but if I hadn’t broken the rules I would have taken profit and been out of the trade. So just go to show everybody makes mistakes, yes, no one’s perfect but have a trading plan in place and stick to it as much as you can and it will really help you.

Looking for some better setups now we've had the Fed Announcement

On to the markets what have we seen? Well we’ve had the Fed Announcement this week and up until that the week before that, it’s just been pretty quite at that especially on the longer term charts. Not been a huge amount of clear direction or huge strength or the weakness in any particular currencies, it’s just been pretty bland out there but now we’ve had that announcement from the feds we’re seeing some clear direction. I’ll give you an example on Monday; I don’t think I took any trades on the daily charts, Monday. On Tuesday I think I took two.

Today I was seeing fourteen currency pairs that I’m looking at definite strength and weakness for today being Friday. So it means that when I’m trading four hourly charts or one hourly charts or anything else, I’ve got fourteen currency pairs that have got a really strong opinion on either looking for predominant buy trades or sell trades. And so it just shows that when the market shows those setups, take the trades, take the opportunities when they show but don’t overtrade and don’t trade just for the sake of trading. If the market’s quiet, if you don’t have a clear opinion and you don’t have any clear direction, don’t take the trade, it’s just simple as that. All you’re doing is losing money from your pocket and feeding your broker. Both of which you don’t really need to do. So that’s in terms of looking at the overall perspective of your trading.

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