Alright, alright, alright everyone! Glad you took some time to get to know a bit about me and my forex trading strategy which I have adopted over the past two years and have been fine-tuning ever since. My goal is to give you guys the basics and then you can have some fun with micro adjustments in order to model it to your liking. My name is Mason and I work for a bio-tech firm in Belgrade, Montana. While I was in college, I stumbled into forex trading. This was more of accident than a planned venture for me, or a I call it today: the best accident which has ever happened to me.
Looking back, the history of Belgrade and the way I was raised may have set me on this path to one day become an investor. Our city was founded by Thomas Quaw in July of 1881. The town site was an unmanned railroad siding almost ten miles west of Bozeman. The railroad company, Northern Pacific Railroad, was operating its trains through this section and was partially financed by Serbian investors. As a token of appreciation for the capital, Quaw named the city Belgrade, after the Serbian capital. Together with his partner William Trace they created the Belgrade Grain and Produce Company and the city was marketed by the duo as the Princess of the Prairies.
I went on to study at NYU, which again was more by accident than my plan after high school. Go Panthers! Being in a small community like Belgrade, we are very proud of our history and our community. So as I studied Biology at NYU, I came across a wild and crazy bunch of math crazy guys who lived in the same dorm as I did. We did share a passion for computer games and killed quite a few hours on weekends, Naturally, we got to know each other better and that is how I was introduced to the forex market. The appeal to make extra money from the comfort of our dorms was appealing, but I kept my expectations in check. Despite our developing love for the forex market, I knew what I am and what I’m not.
My heart was in the bio-tech sector and I was determined to make this my career. Learning about the forex market, I realized that a full-time commitment is necessary in order to create the type of cash flow you need to call it your profession. My friends were on that track, but I chose to have it as a part-time income generator while I continue to focus on my career. Approaching it with this mindset meant that I was in a different category as my friends. I never intended to have forex trading become my main source of income, but wanted to use it to make extra money which I can set aside for retirement related investment purposes. This doesn’t mean that I don’t want to make as much money as possible, but one has to be realistic with what can be achieved with the amount of time invested.
One of the biggest mistakes forex traders make is to discount the time lost. Everyone is focused on money earned or lost, but time is almost never mentioned. You can always replenish lost capital, but you can never get your time back. Since I didn’t have the time required to focus on forex trading full-time, the first step I took was to narrow down the list of currency pairs I would like to trade. Some traders prefer to analyse all of them, some focus only on major, minor or exotic currency pairs. I opened my first forex trading account with PaxForex as I appreciated their approach to the forex market. They accept American traders which was another great feature and besides offering a Tier 1 trading environment, they have a great support infrastructure so that you truly feel like you have partner with each trade you take.
Eventually I settled on trading the EURUSD and USDJPY currency pairs only. At each given time, I only have on those two open in my trading account. I also analyze the monthly charts in my PaxForex MT4 Trading Platform and then move to the weekly charts. I want both to confirm a trend. For example, if the EURUSD monthly chart points towards a bullish trend, I then want the EURUSD weekly chart to confirm a bullish trend as well. In case both my currency pairs flash a trading signal, I determine which one to trade based on the strength of the signal. After I settled on which one I will trade, I move to the daily chart in order to find entry levels for my trades.
I diversify risk by having multiple entry levels into my trend following trade. The reason I call it Single Forex Foray is because I always only have one currency pair active in my portfolio. Forex traders who don’t use leverage as missing out on a great deal of potential profits. While it goes both ways and can increase your losses, those who understand leverage and risk management can greatly increase their trading outcome. I use 1:500 as I learned to trust my strategy. Many blame leverage for losses which is simply incorrect. Losses are created by the lack of a proper risk management solution. Those who claim otherwise don’t understand leverage to begin with and should stay away from it.
Lot size management is key to the success of my Single Forex Foray trading strategy. I identify an area of support or resistance in which I will spread my trades. I do this on the weekly charts which means there could be a 100 to 200 pips range. I then divide it in equal parts, usually 20 pips apart; so if there is a 100 pips support range I am left with 5 entry levels. I do round up so if the range is 130 pips I will have seven entry levels. After that I set-up my trade, which I do all at once with pending orders. As I said, I don’t have the time to sit there and treat it as a full-time job. After that I check in twice per day, usually after the release of economic data in order to manage my positions if necessary. This is how I have been able to consistently grow my trading balance over the past two years and how I plan to keep adding to it, slow and steady, no stress, no hassle and as a part-time venture. My retirement account is growing and I look forward to the day I can enjoy all the benefits from it. Try my Single Forex Foray strategy right here at PaxForex and start earning your own future!
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