300 episodes

Andrew Mitchem is a full time Forex trader and Forex Coach with clients all around the World. Each week I provide you with the latest Forex news plus important trading tips and advise that will help improve your trading performance.

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Andrew Mitchem is a full time Forex trader and Forex Coach with clients all around the World. Each week I provide you with the latest Forex news plus important trading tips and advise that will help improve your trading performance.

    #392: Why I Trade with Low Risk Per Trade

    #392: Why I Trade with Low Risk Per Trade

    Why I Trade with Low Risk Per Trade

    

    Podcast:



    #392: Why I Trade with Low Risk Per Trade

    In this video:

    00:29 – Why do you keep your risk per trade low?

    01:03 - 2 things you must control

    03:05 – This completely amazes me

    04:08 – We also have high R:R trades

    05:33 – Understanding the market and understanding yourself

    06:10 – Our 2020 Black Friday 12 Hour Sale



    I get asked all the time, why I trade with such low risk. Let me explain more right now.



    Hey traders, it's Andrew Mitchem here at the Forex Trading Coach with video and podcast number 392.



    Why do you keep your risk per trade low?



    The question I get asked quite often is, "Andrew look, if you've been trading for so long and you know what you're doing, you know how to trade, why is it that you constantly promote and suggest other people trade with such low risk per trade?" And it's quite an interesting question because people think that, you can just go and risk crazy amounts and make exceptional returns. For me as a full-time trader, that's been doing this for close on 17 years, I can tell you that yes, you can make exceptional returns from the Forex market, but you can do that without risking crazy amounts.



    2 things you must control



    Now, for me, there's two things as a trader, that you have to control. One is your head. The other is your heart. If you can control those two emotions, then you are a long way down the track to helping yourself becoming a good trader. And for me, I've never really, had to worry about my trading because what I know I've got a strategy that works and I'm very comfortable trading it, and I know how to trade it. It's been proven for such a long time. But also because I trade with such low risk per trade, I can place trades. I've got trades on behind me right now. I can go to sleep. I can go away for the day. I can do all sorts of things without stressing about trades, because I know that every single trade that I place has a very low and a controlled stop loss. And I'm not talking about putting a stop loss at 10 pips or 50 pips or a hundred pips or anything like that.



    I'm talking about if my trade gets stopped at and I place, my stop loss at a reason, not just at a number. In other words, I'm not placing it at 10 pips or 50 pips. I'm placing it at a level on the charts for a reason. Well, I know that that's say, got a good chance of not being stopped at, but let's say it does. And of course we all have trades that get stopped at. If it does, I know what my risk is as a percentage of my total account. And I can live with that because I know that it's not going to damage me. I know I can get up and trade again tomorrow. And that's the problem that I see so many traders having, and they have a losing streak and all of a sudden it's like, "Oh my goodness." It's the head and the heart, again. "I can't trade." Or. "I'm scared to trade." Or they see a really good setup and they go and take less risk than they normally would because they've had a string of losing trades.



    And of course that becomes the trade that ends up winning. And they only make a small amount rather than what they should be making. So you see the issue.



    This completely amazes me



    Now, it still blows me away that I see they're just all over the internet, people saying, you should be risking 2%, 5% per trade. 5% per trade. I can have 10 trades in a row, go wrong and lose 5%, which hardly ever happens by the way. But I could have 10 trades in a row go wrong and I lose 5% of my account. These guys online are suggesting that you risk 5% per trade. You imagine what happens when you end up with three or four or five losing trades in a row. How are you feeling? Not only that is, what have you got to do as a percentage gain to make back that loss that you...

    • 6 min
    #391: How to Adapt to The Current Market Conditions

    #391: How to Adapt to The Current Market Conditions

    How to Adapt to The Current Market Conditions

    

    Podcast:



    #391: How to Adapt to The Current Market Conditions

    In this video:

    00:29 – A very interesting week

    00:58 – Needed to adapt to the market price action

    02:02 – Client make a +6.1% gain on XAU/USD H2 chart

    02:27 – Just 1 Daily chart trade for the week

    03:22 – Trading the shorter time frame charts this week

    04:09 – The way we trade at TFTC

    04:28 – Trading next week onwards

    05:12 – Keep a look out for our Black Friday Sale



    As a forex trader, you need to be able to adapt to what is happening in the market at the current time. And I want to talk about that to help you in this week's video on podcast. So let's get into it right now.



    Hey, forex traders, it is Andrew Mitchem here at The Forex Trading Coach with video and podcast number 391.



    A very interesting week



    Now, this week we have had quite a lot happening. We've had the US elections. Right now, as I'm speaking, we still don't know the outcome, and by the time you get to watch this video, you may or may not know the outcome, but with that in mind, the market has been a little bit different to many other weeks. And then later tonight, my time, we have the monthly Nonfarm payroll, the US monthly employment results coming through.



    Needed to adapt to the market price action



    So, what does that mean? Well, it's meant that the market's been quite difficult to trade, but also it means that we've had to adapt to what the market is giving us. And what I mean by that is we've got to look at different currency pairs, different timeframe charts in order to basically give us the right setup that's happening at the time. Now, as you know, I talk about trading on monthly charts, weekly charts, daily charts, 12-hour charts, six-hour charts, all those kinds of longer timeframe charts. Now, this week, it's been completely different due to what the market is giving us. And as an example, online webinar that I held just last night with my clients, which was a fantastic webinar with many, many trading examples, we focused on one and two-hour charts predominantly with a few four-hour charts.



    And on the session, I took two two-hour chart trades, one on the Euro Australia and one on the Euro/New Zealand Dollar. And we took those live, and we explained the setups, et cetera, on that session.



    Client make a +6.1% gain on XAU/USD H2 chart



    Now, also on that session, we had a client who took a trade on gold and made us a massive 6.1% account gain on the two-hour chart on gold. And it just makes you realise that if you adapt to what the market is showing you, you can do very well in all conditions.



    Just 1 Daily chart trade for the week



    And as another example, this week, I've placed just one daily chart trade, just one the entire week. It was placed on Tuesday. It was an Australian Dollar-US Dollar trade on the daily chart. Go and have a look at your charts to see a bearish engulfing candle at the bottom of a downtrend, a double bottom off the bottom Bollinger Band. I believe we also had divergence. I think we all bounced off the 70 level, and we had a retracement all the trade that made a 2.5 to one reward the risk, and we had our market in order to make 1.6 to one reward the risk.



    It would take a quarter percent at each of those two. In other words, half percent risk on total, on the two trades, one trade, two positions. We just over 1% just on the one trade. So we have adapted because we just haven't really seen many daily charts, just the one.



    Trading the shorter time frame charts this week



    We've also adapted because we've been trading predominantly the shorter timeframe charts this week because that's what the market has been telling us t...

    • 5 min
    #390: How to Future Proof Yourself

    #390: How to Future Proof Yourself

    How to Future Proof Yourself

    

    Podcast:



    #390: How to Future Proof Yourself

    In this video:

    00:28 – What an interesting year 2020 has been

    01:20 – Problems around the rest of the World

    02:00 – Using other people’s money to trade?

    03:45 – Take advantage of these ways of making money from trading

    04:23 – TFTC Pattern Trader bots

    05:28 – Trading off a small account size

    06:42 – You need to future proof yourself and learn how to trade correctly



    What would another corona virus lockdown mean for you? Is your job secure and what are you doing to future proof yourself? Let's talk about that and more, right now.



    Hey, traders, it's Andrew Mitchem here at the Forex Trading Coach with video and podcast number 390.



    What an interesting year 2020 has been



    So, it's been an interesting year, hasn't it? We're heading up to the US elections next week, and we've obviously had coronavirus cause issues right around the world. We're lucky here in some ways in New Zealand, we're very small, a couple of islands safely tucked away at the bottom of the world. We've only got one international airport that's open. We've only got three in total, but we've got one that's open. Very, very easy for us to control coronavirus here. Only 5 million people but even so, we can't move around. We can't travel overseas. Visitors are not coming in.



    As a country, we rely on tourism and we're heading into summer now so there's going to be a lot of job losses here, a lot of problems coming.



    Problems around the rest of the World



    Around the rest of the world, Europe is getting... There's more and more problems. There's unrest, there's riots. There's more lockdowns coming and that's likely to cause huge problems and unemployment fear, et cetera like that.



    And it comes back to exactly like I mentioned to you back in around March, April, May time about future-proofing yourself, but how you can use the Forex market to do that. I want to give you some examples of what people are actually doing right now along those lines.



    Using other people’s money to trade?



    The first example is a client who wrote on our forum site just this week. He said that his trading's going really well. He has found one of those sites online where you can prove yourself as a trader. You can then get a split between profits from someone else's funds. And so what he's doing is he's spent the last six months on the course understanding trading, getting to make it work. And now he's at that position where he can really profit from it, which is fantastic. He sent a screenshot on the forum site. He said last week on his first week with this account that he's trading on behalf of another company, he made 7.9% gain.



    There's another email here and I've printed it out to read it to you. I won't give you the name of the company the guy's using, but he says I'm also looking at using the company and other funding providers. It looks like I'm out of work in the next five to six months so looking to transition to a full-time trader by then, and these funding providers are a very attractive option. He talks about the 70/30 profit split and they have a 10% challenge over 30 days and there's rules of maximum and minimums and draw downs and weekends, et cetera.



    And he said on here, I hit a 10% profit last month. And he talks all about what he did and how he's going to approach this. At the end, he said this is a great way to accelerate the path to full-time trading. It's a very viable option.



    Take advantage of these ways of making money from trading



    So there are those type of companies out there,

    • 7 min
    #389: Important Questions to ask a Forex Broker

    #389: Important Questions to ask a Forex Broker

    Important Questions to ask a Forex Broker

    

    Podcast:



    #389: Important Questions to ask a Forex Broker

    In this video:

    00:22 – Joined by Ben Clay at Blueberry Markets

    01:05 – How safe are your funds?

    02:13 – Order types and hedging

    03:30 – Can EU traders work with Blueberry?

    03:56 – Can we get our money back if the broker goes bankrupt?

    05:18 – What happens when you get sudden fluctuations in the market?

    07:06 – Can some trades missed being filled?

    08:19 – What makes Blueberry Markets different?

    10:08 – Email me if you’d like to ask Blueberry Markets another question



    Andrew Mitchem:

    Today, we're going to be answering your questions and the number one question that you want to ask a Forex broker. Let's get into it right now.



    Andrew Mitchem:

    Hey, traders, it's Andrew Mitchem here at the Forex Trading Coach with video and podcast number 389.



    Joined by Ben Clay at Blueberry Markets



    Now, something a little bit different today. We're joined by Ben Clay at Blueberry Markets over in Australia. Hi there, Ben.



    Ben:

    Good day, Andrew. How are you?



    Andrew Mitchem:

    I'm fantastic and hope you are well too.



    Ben:

    Thanks, mate.



    Andrew Mitchem:

    Good. We've got something different. And last week, I asked a lot of questions to people and said, look, I want to know from you what's your most important thing that if you could ask a Forex broker directly and we had a lot of questions come through. What I've done, Ben, I've just listed the main important topics. And if we can, I'd like to ask you those questions and just get your feedback on that so we can help people when deciding who to look for for a Forex broker.



    Ben:

    Absolutely. Absolutely, mate.



    How safe are your funds?



    Andrew Mitchem:

    We'll start with this one is from a guy called Percy over in the United Arab Emirates. And Percy said, and this is a very common question. How safe is my money if the broker goes bankrupt, even if they're regulated?



    Ben:

    Very good question, Percy. It's one that I get asked very often as well, and is a question that you should be asking your broker, in my opinion. When it comes to any financial institution, there's risks no matter where you hold your funds. Even if it's in with the bank, there's always risks holding funds at any financial institution.



    Ben:

    However, in Australia, we're regulated by ASIC, the Australian Securities and Investments Commission, which enforced the Australian Client Money Laws. This is something that's been in place over the last 10 years or so, I believe, and very strict and diligent. Basically, it states that client's funds are segregated and kept separate from our daily operating funds, can't pay for staff wages, company losses, anything along those lines. But having said that, again, I cannot say the funds are 100% safe, but we are overly compliance here at Blueberry and follow these laws very closely to ensure that client funds are as safe as they possibly can be.



    Order types and hedging



    Andrew Mitchem:

    Perfect. Thank you, Ben. Second question from Antonio over in Barcelona in Spain. Do you allow pending audit trading with expert advisors, robots? And do you also allow hedging?



    Ben:

    Oh, okay. We allow any expert advisors. That's no issues at all and they can place pending orders. We have the four basic types of buy limit, sell limit, buy stop, sell stop, and we do allow hedging. I actually would like to touch on that a little bit because hedging is something I think there's a little bit of misconception around where clients can hedge a trade and it's used as protection.



    Ben:

    Whereas,

    • 10 min
    #388: Should You Only Trade The Major Forex Pairs?

    #388: Should You Only Trade The Major Forex Pairs?

    Should You Only Trade The Major Forex Pairs?

    

    Podcast:



    #388: Should You Only Trade The Major Forex Pairs?

    In this video:

    00:26 – 2 things to talk about today

    00:53 – How do you know which pairs to trade?

    01:43 – Should you only trade the Majors?

    02:28 – My trading routine

    04:55 – It doesn’t matter which pairs I trade

    05:18 – All covered in my 5 star rated coaching course

    05:42 – I’ll be interviewing Blueberry Markets – let me know your questions



    How do you know which Forex pairs to trade? And when? Let's talk about that and more right now.



    Hey, Forex traders, Andrew Mitchem here, the owner of The Forex Trading Coach with the video and podcast number 388.



    2 things to talk about today



    Now I've got two things to talk about. The first, I want to talk about how I can help you to know which Forex pairs to trade.



    And secondly, at the end of the video, I'm going to explain about next week's video and podcast when I'm going to be interviewing, Ben Clay from Blueberry Markets and I want to know from you, what's your number one question you'd like me to ask Blueberry Markets to Forex Brokers. So we'll talk about that at the end.



    How do you know which pairs to trade?



    So back to the first point, how do you know which Forex pairs to trade? Now, it's a problem that a lot of people come to me and they say, hey Andrew, look, I just don't know what to trade.



    There's a lot of currency pairs out there, which ones should I look at? And as Forex traders, we're quite a fortunate position when you think about it. And that we really only have eight main currencies to look at and the combinations of each. Now of course there's extra currencies like Norwegian kroner and Swedish krona and South African rand and all those. But there's really the main eight. Unlike most other markets out there where there could be hundreds or even thousands of different stocks and shares and companies to look at. So we do have an advantage, but it's still confusing for a lot of people.



    Should you only trade the Majors?



    And now another thing is a number of people also suggest that you should just look at the main currency pairs, the majors, and that will be like the GBP/USD, EUR/USD, USD/JPY, USD/CHF, AUD/USD, NZD/USD, USD/CAD.



    And you start to see the problem there is that they all have the US Dollar in them. Now let's say the US Dollar happens to be quite flat. Then there may not be many opportunities there, and that becomes the issue or the US Dollar is very strong or very weak, and they'll move together and then things suddenly change around and they all come and stop you and that becomes the problem when you trade just the majors. So what I like to do this is my routine.



    My trading routine



    At the beginning of each week, I scan the weekly charts on all the currency pairs or the main character pairs. There's about 28 of them. And by setting up my weekly charts as a profile on my MetaTrader Platform, it's very easy to get all the Euro pairs, all the Pound pairs, all the Aussie pairs, all the Kiwi pairs and just scan through and see what's happening on the weekly charts.



    There'll be some trades there most weeks, but even if there are no trades or very few trades off the weekly charts themselves, what they do is they give me an overall biases, this country pairs a little bit indecisive, or this one strongly bullish, or this one's very bearish and is that likely to continue for the upcoming week, yes or no?.



    And it allows me to basically to plan that bigger picture. And then at the beginning of each new day, I then do exactly the same process,

    • 6 min
    #387: How to Prevent your Stop Loss from being Hit

    #387: How to Prevent your Stop Loss from being Hit

    How to Prevent your Stop Loss from being Hit

    

    Podcast:



    #387: How to Prevent your Stop Loss from being Hit

    In this video:

    00:25 – Stop loss placement

    01:04 – Examples shown on our weekly webinar

    03:00 – The benefits of having the stop loss protected by a round number

    03:33 – EUR/CAD trade makes a +1.5% account gain with low and controlled risk

    04:32 – Details about how you can learn how to take trades like this too 



    What measures can you take to prevent your stock loss from being hit all the time? Let's talk about that more right now.



    Hey, Forex traders, this is Andrew Mitchem here, the owner of the Forex Trading Coach with video and podcast number 387.



    Stop loss placement



    I want to talk about an issue that affects all of us, and it's talking about stop loss placement and how to place your stop loss why and where, and what can you do to give yourself a higher probability chance of success within your trade and to prevent your trade from being stopped out? And this was a discussion that we had on our live clients webinar just last night my time. I was asked by a new client that's just joined us this week, and he said, "Look, I've been through the course, loving the concept and how you're going, but what measures do you put in place to help protect your stop loss?"



    Examples shown on our weekly webinar And so I showed a lot of examples, as I do every week, that have stop loss protection. Now, what I mean by that is this. It's not just placing your stop loss at X number of pips. It's not even placing your stop loss, according to the way that we trade with fibs, extensions, and retracements, but it's also having extra protection in place to prevent that stop loss being stopped out. Now, a perfect example of that would be to have your stop loss on a sell trade above a round number. Now, we took a trade on that webinar yesterday, and you're going to see it on your charts. It's on the Euro-Canadian dollar on the one hour chart on the 8th of October. And we took a sell trade, and the trade had just come down through the 156 level 1.5600. And it had broken below that level. It closed below that level.



    We saw the setup that what we're looking for, we had the trendline break in place, we had divergence, we had below the pivot point, all the things we're looking for with a candle set up. Everything was really good there. Room to move to the profit target. But what we had is we had the ability to put our stop loss above 156, above that round number. And what that was basically saying was, on this trade, if the price then pulls back and goes to 156 and back beyond it, we get stopped out, we accept that we lose on the trade, but we have controlled low risk on that trade. So if the trade got stopped out, then we lose. We accept that. That's part of trading. But what we also had in our favour was we knew that the 156 level had been a strong level in the past, and we knew that it was a round number, and those psychological levels are very, very important.



    The benefits of having the stop loss protected by a round number



    And by placing our stop loss above that level, it meant that not only did we have our stop loss above the high of the candle and a swing high, it meant that the price to go and break that strong barrier in order to take us out. And as it happened, the price dropped and it did exactly as we thought it would do, and it moved to the previous main swing low, and it gave us a three to one reward to risk trade in under three hours. In under three candles, profit target had been hit for a three to one reward to risk trade.



    EUR/CAD trade makes a +1.5% account gain with low and controlled risk



    Now, if you placed half of 1% of your account on that one position, you'd have made a one and a half percent accoun...

    • 4 min

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