Andrew Mitchem who has been dubbed as The Forex Trading Coach has been trading since 2004. Now Andrew, like The Lazy Trader, very much believes in lifestyle trading… but unlike us, actually trades on the lower timeframes.
Andrew has a big presence on Forex Peace Army and has taught thousands of traders to date via his online training portal since he metamorphosed from a loss making rookie into who he is today.
Andrew Mitchem’s journey is different to that of many other traders; it took him four years to make anything out of trading on a consistent basis. After four years most people would probably have given up, but Andrew kept at it – people give up far too easily, especially if they think trading is easy money. You need to have the right trading mindset. He was able to go through things at a slow pace, not needing to make money, not thinking that he would get rich quick. It allowed him to go through a learning process to work out which systems were beneficial.
Trading can be emotionally exhausting for many people. They are attached to the outcome. For Andrew Mitchem, it was more about looking at the charts and the maths rather than the monetary outcome. Once you understand how to trade, the money will follow on afterward.
Trading on smaller timeframes doesn’t cause a problem. The shortest that Andrew Mitchem trades is the four hour chart, although he has developed some software for six hours and eight hours. But he only checks them twice a day – 5pm and 5am. This means he won’t stress if he is doing other things. This is one of the reasons why he loves to take retracement orders; it gives him the time to scan through the charts and he isn’t going to move at the wrong time. He can easily see whether there is a trade, and if there is what the entry and exit points are.
Andrew Mitchem’s trading style is technical based. Although he does look at the high impact news announcements, they don’t affect his trading. For him, it’s about using overall strength and weaknesses and trying to trade continuation patterns or reversal patterns which are both very simple. It’s best to be as simplified as possible when trading, and this is one of the best trading tips he can offer. There are some things he certainly likes to see in his trading; if he is taking a bi-trade, he likes to see a pull back downwards first, and then a bullish pattern to reversal, for example.
Andrew Mitchem also likes to use round numbers a lot – numbers that end in zero or 50 – plus divergence as a final backup. He is certainly not a fan of using lots of lagging indicators – real time is much better.
One of the nice things about looking at the higher timeframe chart to get an overall gauge of where the week is likely to go is a very simple process on a Monday morning. It gives Andrew Mitchem confidence that the bigger picture is looking bullish which, if it matches his smaller timeframe, means he can continue.
In the first four years Andrew Mitchem’s trading was ‘all over the place’. At the end of that time, he wiped everything from his charts except for the best of what he had learned. Since then it has never changed, even if the markets have. The beauty of trading the longer timeframes and the technical charts is that it doesn’t really matter what the market is doing. The same philosophy can be used no matter what timeframe.
This, of course, is sometimes easier said than done. If there is no trade, many people will want to place one anyway – the key is to not do that. Don’t force trades to happen. Remember: there are no prizes for trading more. Plus, having higher reward to risk trades means that you don’t have to trade so much.
Andrew Mitchem always risks a maximum of 0.5 percent. It makes life so much easier; each trade is equal and it takes the emotion out of things. You are more easily able to control what you are doing when you have a fixed percentage to trade with. It does mean you have to have confidence in your system to leave the trade in – it’s the epitome of set and forget.
If Andrew Mitchem sees the price get to a certain level on a daily chart (his favourite timeframe), but it’s not at his profit target, yet he can see on the smaller timeframes that there is weakness in the trade, he might scale out. It all depends on the timeframe. Or he might have 0.25 percent risk on a retracement order and 0.25 percent on a market order instead. It needs to be as mechanical as possible otherwise emotions get in the way.
Andrew Mitchem didn’t really have a mentor. He did attend a day course, which is what got him into forex, although the course wasn’t much good. He did subscribe to some newsfeeds and so on, but it was more about trial and error than anything else. It was working out what worked for him, enabling him to compile a strategy. It took four years to become consistent, which is pretty good going.
Andrew Mitchem gives a lot away for free. It seems natural to him to do this. It also keeps his trading sharp as he has to be answerable. It benefits him as much as everyone else. The giveaway information helps a lot of people which he helps doing, and it also helps to bring people to him. Plus it’s built up his name and reputation in the industry.