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In this interview, Andrew Mitchem, a seasoned Forex trading coach and founder of The Forex Trading Coach, shares his insights into the trading journey and how his strategy has adapted to changing market conditions. With over 14 years in the market, Andrew has seen it all—from market crashes to opportunities in emerging assets like cryptocurrency. Despite the evolving landscape, his core approach to trading remains grounded in technical analysis and a strong risk management framework.
In this post, readers will learn about Andrew’s disciplined approach to risk management, his use of price action and Fibonacci levels, and why he believes in the power of simplicity. He dives into how his strategy works across different markets, how he applies it to both Forex and crypto, and how he balances his trading with a busy lifestyle. If you’re looking for practical, time-tested trading tips from a pro, Andrew’s insights are a must-read!
Andrew Mitchem Playbook & Strategy: How He Actually Trades
Andrew’s Core Trading Philosophy
Andrew believes in keeping trading as simple as possible, focusing on what works and ignoring the noise. His strategy revolves around understanding market conditions, setting clear risk-reward expectations, and letting the market play out once a position is placed.
- Keep it Simple: Focus on basic technical analysis tools like price action and Fibonacci levels. Avoid overcomplicating with excessive indicators.
- Risk-Reward Mindset: Always aim for 2-5 times your risk in potential profit. Set clear profit targets and stick to them.
- Let the Market Work: Once a trade is entered, let the market do its thing. Avoid over-managing positions and trust your setup.
- Patience is Key: Don’t chase trades. Wait for the right setups to align with your strategy.
Using Price Action and Fibonacci Levels
Andrew’s strategy is grounded in price action. He uses candlestick patterns combined with Fibonacci retracements and extensions to identify entry points and set stop-losses and profit targets.
- Identify Price Action Patterns: Focus on exhaustion and continuation patterns. Look for clear signs of reversal or continuation in the market.
- Use Fibonacci for Entries and Exits: Apply Fibonacci retracement levels to define potential entry points. For buy trades, wait for the price to retrace to a significant Fibonacci level before entering.
- Set Stop-Loss Based on Fibonacci Levels: Your stop-loss should align with a Fibonacci level. Adjust the stop-loss based on the volatility of the candle.
- Round Numbers Matter: Avoid placing stop-loss or take-profit levels on round numbers (e.g., 1.2000). Price often tests these levels before reversing.
Managing Risk with Consistent Position Sizing
Andrew manages risk by focusing on the percentage of his account that’s at risk per trade, rather than the pip amount. This keeps his risk constant across different assets and timeframes.
- Risk a Set Percentage per Trade: Always risk a set percentage of your account per trade, usually around 1-2%. This ensures consistent risk management.
- Adjust Position Size According to Volatility: Larger candles mean more volatility, so adjust your position size accordingly.
- Keep Reward to Risk Consistent: Maintain a consistent risk-reward ratio. For example, aim for a reward that’s 2-5 times your risk per trade.
Trading Multiple Markets with the Same Strategy
While Andrew started in Forex, his strategy is flexible and can be applied to a variety of markets, including cryptocurrencies and commodities. The key is maintaining the same approach regardless of the asset.
- Same Strategy Across All Markets: Use the same price action strategy whether you’re trading Forex, crypto, or commodities.
- Adapt to Market Conditions: If the Forex market is quiet, look at other markets for better opportunities. For instance, if crypto or commodities are offering good setups, shift focus.
- Timeframe Flexibility: Andrew uses multiple timeframes, from monthly to intraday charts, allowing him to spot opportunities across different time horizons.
The Importance of Discipline and Patience
One of Andrew’s key pillars of success is the ability to stay disciplined, stick to his trading plan, and not be swayed by emotions or market noise.
- Stick to Your Plan: Once a setup aligns with your strategy, take the trade and leave the rest to the market. Don’t second-guess yourself mid-trade.
- Don’t Chase the Market: Avoid entering trades just because you’re anxious to be involved. Wait for the right setup to align.
- Accept Losses as Part of the Process: Losing trades are inevitable. Focus on your overall strategy and long-term results, not individual wins or losses.
Trading With Routine and Time Management
Andrew manages his trading with a strict routine. He looks at the markets at specific times, ensuring that he’s trading efficiently without being glued to the screen all day.
- Set Trading Times: Trade at specific times of the day, such as the 5 PM New York close for daily charts. This helps you stay organized and avoid unnecessary screen time.
- Use Limit Orders: Place limit orders rather than watching the markets constantly. This reduces the emotional stress of having to be at the screen when trades trigger.
- Balance Life and Trading: Andrew balances trading with his personal life by keeping his trading sessions short and to the point. He doesn’t allow trading to consume his entire day.
Risk Management: How to Define Your Trade Size for Consistent Wins
Andrew Mitchem’s approach to risk management is simple yet powerful. He firmly believes that defining your trade size based on a set percentage of your trading account is one of the most effective ways to ensure long-term success. Instead of focusing on the number of pips or the specific asset being traded, Andrew prioritizes controlling risk by consistently applying the same percentage of risk per trade. This allows him to maintain a balanced approach, no matter what market or time frame he’s trading.
For Andrew, managing risk isn’t about trying to avoid losses but about accepting them as part of the process. He always risks a fixed percentage, typically 1-2%, per trade, ensuring that no single loss can devastate his account. This risk-defined strategy also helps him avoid emotional decisions in the heat of a trade. With a clear risk plan in place, Andrew can take losses in stride and continue trading with confidence.
The Power of Patience: Letting Your Trades Play Out for Maximum Gains
Andrew Mitchem emphasizes the importance of patience in his trading strategy. He believes that once a trade is placed, it’s crucial to let the market move according to the plan and avoid second-guessing. Interfering with a trade, whether by micromanaging or overanalyzing, often leads to worse outcomes. By trusting in his strategy and allowing each trade to reach its predetermined stop-loss or profit target, Andrew ensures he isn’t making impulsive decisions that could harm his overall performance.
For Andrew, patience is not about simply waiting for trades to play out but also about recognizing when to step back. He advises traders not to chase after every opportunity but instead focus on high-quality setups. By having the discipline to wait for the right moments, Andrew has developed a strategy that balances risk and reward, ensuring that even when a trade doesn’t go as planned, the overall process is still sound.
Price Action Mastery: Spotting High-Probability Setups Without Overcomplicating
Andrew Mitchem is a firm believer in the power of price action, using it as the foundation of his trading strategy. He avoids overloading his charts with numerous indicators, instead focusing on the natural flow of price movement to identify potential setups. By analyzing candlestick patterns, support and resistance levels, and market structure, Andrew can pinpoint high-probability trades with minimal clutter. This simplicity allows him to stay focused on what truly matters, leading to clearer decision-making.
For Andrew, mastering price action means understanding key patterns like exhaustion and continuation setups. He’s not concerned with every small price fluctuation but focuses on more significant moves that align with his strategy. By sticking to what he knows works and ignoring the noise, Andrew consistently identifies strong trading opportunities, making his approach highly adaptable across various markets, including Forex, crypto, and commodities. His rule is clear: stick to the basics of price action for cleaner, more reliable trades.
Using Fibonacci Levels: Smart Entries and Exits That Align With Market Movements
Andrew Mitchem incorporates Fibonacci retracements and extensions into his trading strategy to fine-tune his entries and exits. For Andrew, Fibonacci is not just about identifying potential support and resistance levels but also about understanding where price is likely to move next based on previous price swings. By applying Fibonacci levels to individual candles, he can more accurately predict where the price may retrace or extend, ensuring that his trades are positioned with precision. This approach helps him avoid chasing markets and instead enter trades at more favorable price points.
What makes Andrew’s use of Fibonacci unique is his focus on market context. He doesn’t use Fibonacci in isolation but combines it with other price action cues, such as key candle patterns and round numbers, to validate potential trade setups. Whether trading on smaller timeframes like the two-hour chart or larger ones like the monthly chart, Fibonacci allows Andrew to adapt his strategy to different market conditions. By doing so, he maintains a consistent risk-reward ratio, ensuring that each trade has the potential for a meaningful return while keeping risk within manageable limits.
Trading Flexibility: How to Adapt Your Strategy Across Different Markets
Andrew Mitchem has built a trading strategy that’s adaptable across multiple markets, from traditional Forex to emerging assets like cryptocurrencies. While he initially focused on Forex, his ability to apply the same price action and risk management principles to new markets has been a key to his success. Andrew believes that once you master a solid strategy, it can be applied to a variety of asset classes, provided you stay disciplined and true to your core rules. Whether trading Forex pairs or digital currencies, his approach remains the same, focusing on high-probability setups and proper risk management.
For Andrew, trading flexibility means being able to adjust to the market conditions of the day. If one market, like Forex, is quiet, he shifts his focus to others, like commodities or crypto, where more opportunities might be available. This flexibility not only keeps his trading fresh but also allows him to take advantage of the best setups, regardless of market type. By applying the same strategy across different markets and timeframes, Andrew ensures that he’s always aligned with the market’s rhythm, increasing his chances of success while managing risk effectively.
Andrew Mitchem’s trading philosophy is built on simplicity, discipline, and adaptability. His core approach emphasizes mastering the basics of price action and risk management, allowing him to remain consistent across various markets and timeframes. One of his most important lessons is the value of risk management—he always risks a set percentage of his account per trade, ensuring that his capital remains protected regardless of the outcome of individual trades. This risk-defined strategy gives him the ability to trade without emotional interference, letting his strategy play out over time for consistent results.
In addition to risk management, Andrew’s use of price action and Fibonacci levels helps him spot high-probability setups, while his adaptability across markets—whether Forex, crypto, or commodities—ensures that he can take advantage of the best opportunities available. Patience is another cornerstone of Andrew’s approach. He trusts his strategy and allows trades to unfold without micromanaging, which is key to maintaining a clear, objective mindset. His disciplined, straightforward approach to trading—along with his focus on simplicity and flexibility—offers valuable lessons for traders looking to build a long-term, sustainable trading practice.
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