Page 16 - PowerPoint Presentation

> Trading Tips – Andrew Mitchell – The Forex Coach

system that's making you a lot of money but you're sitting there for 12 or 14 hours a day

glued to your charts? That's just no fun at all. You should be having lots of fun and not
spending too much time at your charts. For me, it's important to have something that I

can trade for only a short amount of time per day but does very, very well, and I think

that's important for getting longevity and enjoyment out of your trading. Make sure you

find out what works for you, what suits your style and your personality as a person and as
a trader.

#3 – A low risk money management trading approach
Number three, you need to use, and to understand correctly, a low risk money

management approach. Even if you have the best trading system on the planet, but don't

have low risk, high reward approach, you will generally lose money. Even with a 90%

winning system you can still lose money. You can also get heavily influenced by emotions
such as greed or fear, if you're risking too much on a trade. Emotion can take us away

from our trading plan. Keep your risk really low for every trade.

#4 – Learn how to trade first

Number four, you must learn how to trade first. Get using the platform and trading

techniques right first. Too many people come to me and they say, “Hey, Andrew. I want to

be a full-time trader. I never traded before but I want to be a full-time trader,” or, “I can't
stand my job. I want to make Forex work for me.” It really is not the way to be successful.

Also, when you're trading, forget about how much money you're making. People say to

me, “Look, how on earth can I make a profit? You're telling me to risk half of 1% and I've
got a $10,000 account. That's risking $50 a month. I'm making a hundred, $150 on a

$10,000 account. I can't live on that.” On a $10,000 account is not one that you can make

a full-time living from. It's just pointless trying to think that you are. The important thing
to do is to get away from the monetary gains or losses for now. Worry about the

percentages instead.

The reason I say that, is that even if you make let's say a 50% return per year on say a
$10,000 account, you will only make $5,000. You can live on a $100,000 account. You can

live very well on a $500,000 account but that is later, down the track. It really doesn't

matter how much money you have in your account right now. The important thing is to
learn how to trade. It is really important to do that first. If you get this right, then the

money will follow. I have absolutely no doubt about that. Of course, you could have a

$1,000,000 account today and still be a bad trader that loses money. The actual size of
your account, how much you're making or losing today doesn't matter. Learn how to trade

properly first.

#5 – Be level headed and be consistent
Number five, be level headed, be consistent, be confident. Don't go off on a tangent.

What I mean by that is you have to be consistent in how you trade. People say things to

me such as; “Look, I can't be bothered to trade today or “I took twice the amount of risk
that I normally took on a trade because it looked pretty good.” They are displaying