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How Boston Makes $1K a Day in FX
Written by: PaxForex analytics dept - Saturday, 08 June 2019 0 comments
Hi to all my forex trading friends and those who think to give it a go. My name is Boston and I am originally from East Carbon, Utah in the US. Go ahead and crack a joke about my first name, I get it. I am Boston from Utah, hahaha. Heard it all before. Now that you all had a great laugh on my account, let’s move on to my forex trading strategy which enables me to earn $1k per day as a full-time trader. I understand that most of you have only time for part-time forex trading which is perfectly fine, you can still use my strategy and earn money. In the end you get what you put into it and my goal is to share my simple approach so that you can easily replicate it.
Before I dive into the details, I want to talk about the history of East Carbon for a moment as it has paved the way for my forex career. My home town has acted more like a business than a town. We are located in Carbon County and as the name suggests, there are plenty of carbon deposits here which means quite a few mines. East Carbon was only incorporated as a town on July 23rd 1973 and was created through the merger of two mining towns, Dragerton and Colombia. As you see two struggling town came together in a business transaction and formed something better.
There is more, on January 1st 2014 the city of Sunnyside merged with East Carbon. Now our community consists of three cities which merged into one community. When it comes to forex trading, I think the biggest mistake is to go it solo. You will have to much pressure, too many biases and therefore take plenty of bad trades. I started out like that and as many others I was losing quite a bit of my trading capital. No matter what I did, I had a few bright days followed by losses and month after month my balance decreased and my frustration increased. A very toxic mix and no matter how much you tell yourself that a revenge trade is wrong, you will feel forced to take one anyway.
The biggest change I made is to team up, or merge my operations in the same manner as my home town did. Before the merger, there were three struggling towns. You can compare this to three struggling forex traders who have to fight every day just to stay alive in the markets. After the three towns merged, things started to look up. I am not suggesting that you will go from losing money to being rich after you team up, but trust me it will possible have the biggest positive impact on your forex trading. After a few years as a solo and struggling forex trader, I have connected with a nice group of traders and three of us decided to team up.
It is very important that you team up with people who share the same trading ideology, otherwise you take three struggling traders and turn them into one big struggling trading operation.
After you find two other traders you can team up with, it is important to divide and conquer the forex market. I am not suggesting that you pool your capital together, but if you build up a reputation it can be a smart move. It will reduce trading costs and increase profits. It may only be a few pips total per trade, but in the forex market every pip counts. We decided to place all our capital, three equal parts of $5,000, into one account at PaxForex in order to manage a total of $15,000.
The next step is to make sure everyone has assigned tasks to focus on. One of is responsible for fundamental analysis and covers everything which can disrupt price action. We are talking about economic calendars, geopolitical events, and any other news which can move markets. Another one has to cover technical aspects of trading, identify entry and exit levels and set-up trades. We only take trades were the fundamental analysis and the technical analysis agree on the direction of the trade and ignore the rest. We prefer to have a minimum of three trading signals going the same direction before entering a trade.
The third team member is responsible for entering trades and managing the portfolio according to our agreed on risk management parameters. Three times per day we have a group chat, once early in the morning, once in the afternoon and once in the evening. You need be committed to trading otherwise trading won’t be committed to you. We discuss out analyses, share our points of view and act on everything we have full agreement on. We prefer to trade G-10 currencies only and ignore exotic currency pairs due to the lack of volume which is important for our forex trading strategy.
Finally, let’s get to the last key aspect of our approach. We only take a few positions, high lot sizes and small pip moves. We are not scalping the market, but our average profit averages around 12 pips per trade. Since we take larger lost sizes, each pip move is usually between $50-$75 so you can see how this stacks up. We make a few of those trades every day and make sure that at the end of our trading all positions are closed. We start the next day with a clean slate. There are too many unknowns which can impact price action over night. Don’t get too greedy, the more you trade the more mistakes you can make. We make roughly $3,000 per day which means $1,000 per team member. We are happy with this and don’t try to increase it. Build your team and make sure to trade with an excellent forex broker like PaxForex where we grow our account balance every day!