#397: How to Lose Money Fast through Trading

How to Lose Money Fast through Trading  Podcast: #397: How to Lose Money Fast through Trading In this video: 00:33 – You’ll know it’s easy to lose money through trading 01:27 – What are you going to do differently? 02:05 – Watch last week’s video about using Limit Orders 05:01 – A real example on the EUR/AUD W1 chart which made a 4:1 R:R 06:22 – New monthly webinars for all traders to attend 07:16 – We’ve gone full circle I'm going to explain how you can lose money really, really fast by trading the Forex market. You interested? Let's talk about that and more right now. Hey, traders, Andrew Mitchem here at The Forex Trading Coach, with video and podcast number 397. And you can see it's an awesome day here, summertime in New Zealand, so I thought I'd come outside. I want to talk about something very, very different this time. I want to talk about losing money. You’ll know it’s easy to lose money through trading Now, it's very, very easy to do that if you're trading in the Forex market, and if you've been trading for any length of time, you will know how easy it is to lose money. Now, not the sort of topic that I usually talk about, so you can see it's kind of like tongue in cheek here, because really everybody knows how to lose money in the Forex market. All you have to do is to simply do what most people have always done and just follow the masses, do all the usual things that most people do that are incorrect. And if you do that, you will certainly lose lots of money. But that's not fun. If you want to change things around, like with anything, if you continue to do what you've always done, as the phrase goes, you will continue to get what you've always got. What are you going to do differently? So as a trader, what are we going to do differently here now to change this around? What are you going to do with your mindset, with your thinking, with the way that you trade, with what you're going to learn, who you're going to interact with, all those types of things? What are you going to do to change this around? Because otherwise, like the topic of this conversation, you will lose money and you'll do it really well and you'll do it really fast. You'll get upset. You'll blame the broker, you'll blame the internet, you'll blame everybody, but ultimately it's you that's done it wrong. So yes. Okay, so you're going to change things around, what are you going to do? Watch last week’s video about using Limit Orders Well, have a look at last week's video and podcast, as an example of one simple thing you can do to change things around. The feedback from that, by the way, thank you for that, was tremendous. It was all about using retracement orders, limit orders, and how that one simple thing can massively change your trading performance. Now, this week I held a presentation for a group of traders over in Singapore. Of course, it was online. I haven't been over there. But on that presentation, I put together a very, very simple chart, and I made an example of a trade. And I said, "Well, here's three ways of trading this trade, entering the trade. We can enter at the market. We can enter using a stop order," in this example, it was a buy trade, so a buy stop, "or we can enter using a buy limit." Now, this trade had the same stop loss on all three entry methods, had the same profit target on all three entry methods. It was a hypothetical trade, but it was to show an example, and it was to say, basically what we showed was, if you enter at the market, this particular trade example made about a 1.1-to-1 reward-to-risk. If you entered using a stop order, it made about a 0.6-to-1 reward-to-risk. If you entered using the limit order, it made a 2.2-to-1 reward-to-risk.