#521: Why a 90% Winning System is a Bad Idea

Why a 90% Winning System is a Bad Idea  Podcast: Signup For my Forex Masterclass Find out more about Blueberry Markets – Click Here Find out more about my Online Video Forex Course Book a Call with Andrew or one of his team now #521: Why a 90% Winning System is a Bad Idea In this video: 00:25– Why I don’t trade the news   01:20 – Problems with Fundamental trading 02:30 – Different conclusions from the same news 03:30 – Trading what you see as a Technical trader   05:00 – Book a call with me and my team - https://theforextradingcoach.as.me/schedule.php 05:21 – Blueberry Markets As a full time forex trader, I completely ignore the news. Let me explain why and how we trade. Let's get into that and more. Right now. Hey there forex traders. It's Andrew Mitchem here, the owner of the Forex Trading Coach with video and podcast number 520. Why I don’t trade the news   And that's right. I completely ignore the news. I don't look at the news. I don't consider the news and it just does not affect my trading. Now, in the Forex world, there are generally two types of traders. We have fundamental traders who do look at news announcements. Aand we have technical traders. And I'm definitely a technical trader because I look at charts, I do not clutter my charts with lots and lots of indicators because that just becomes a mess and I'm tradable. I look price action, I look at the close of a candle and I look at what is actually happening in the market and make a decision. Do I have protection for my stop loss? Do I have room to move to my profit target? I know that my patterns work across all timeframes, all markets, and depending on the conditions at the time, if I see the pattern, I take the pattern because it has such a high probability chance of success. Problems with Fundamental trading Now fundamental traders look at the news. And while I personally still do look at Forex Factory once a day on the calendar just to see what's happening purely out of interest, I don't care about the news. It doesn't influence my trading. I don't take positions out. Just prior to news or anything like that because as a technical trader I don't need to. I trade what I see. The issue I've always had, or there's quite a few issues. I've always had a fundamental trading. From a practical point of view, depending on where you live in the world, some of the major market news announcements might be like 2:00 or 4:00 in the morning, not very practical for me living in New Zealand, if I'm looking at the European news or especially the US News, that's like, you know, sort of 11:00, 12:00, 2:00 in the morning type of things. Likewise, if you're in Europe or the US and you're looking at Australian news, let's say, oh, Japanese news, it's not at a very convenient time. And the other thing is from a practical point of view, is you'll find quite often brokers will increase spreads massively, Sometimes if price freezes around news announcements. So it's not quite all. It's like sort of talked up to be when you trade news. Different conclusions from the same news The other thing is also is if you look at a news announcement and I look at a news announcement, we could see the same news announcement and draw completely different conclusions because you might say, oh, it's way better than expected figure. Therefore we should be buying that that currency. I might say yes, better than expected. But last month they've dropped it all. There's been some commentary after that to say this is going to be, let's say, the last interest rate hike or something like that, which means yes, okay. But long term, it's not so good. So different people will see news announcements in different ways. So you got to be real careful there. And in all honesty, most big news announcements generally go in the way of the longer timeframe charts as a technical trader anyway, I can pretty much see most of the time which way news announcements ar...