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Paul’s Power Punch in the Forex Market
Written by: PaxForex analytics dept - Friday, 05 October 2018 0 comments
There are countless of posts online which tell you why you should or should not trade forex, so I will spare you the why you should points. I mean it is obvious, you should be in the market as it is the only one on this planet which allows you to create a true income stream, 24/5, one that you can depend on. I won’t lie to you, it requires patience. Those who come armed with patience can truly experience the great world of forex trading. This is precisely why I decided to share my story and strategy here with you all.
Let me get right to it, and not waste anyone’s time. I call me strategy the Power Punch as it really packs on those extra pips with each trade. All you need to get started is a forex trading account with a great and reliable forex broker such as PaxForex. I can’t stress the importance of this enough. It’s no good if you earn a lot of money trading forex, if your broker messes around when you ask for a withdrawal. PaxForex is great about it, same day processing if the request is send within business hours. No questions, no hassles, just perfect!
Now I know a lot of traders don’t have too much money to get started. Not a problem, my advice is start today with whatever you have and keep adding to it. It’s best to make a schedule each month and treat a deposit the same as paying rent. Treat your account with the same importance and pay yourself, invest into you and your future. When I started, my first deposit was only $750. I have now over $30,000 in my trading account. Yes, it took me a few years. It was not only fun and exciting, but also amazing to see my hard work pay off.
As your account grows over time, so do your profits. It’s a step-by-step progress which should not be rushed. Too many new traders try to compensate the lack of start-up capital with high lot sizes in order to earn more per trade. This is a very dangerous way to trade and in most cases results in blow trading accounts. Again, be patient. Trade smart, don’t risk too much. Small daily profits together with monthly deposits will get you there. As you start trading, you will see what I mean.
With my $30,000 account, I now earn between $1,000 and $1,500 every week which was enough for
me to quit my job and focus my time on my passion. This freedom is the only true freedom which counts for me. I can live the life I want and not work a job in order to survive. I can only encourage everyone to take the first step today and start building a portfolio for a better tomorrow. Don’t listen to other people who will tell you that it’s not possible. Just ask them: Do you trade forex?
OK, here is my Power Punch strategy. Most traders like to place a take profit, for example 50 pips away from their entry. They place one trade, entered their stop loss order and forget about the trade. They will repeat this with all currency pairs which match their buy or sell criteria according to their strategy. This can work great, but in most cases they will leave plenty of pips on the table. Timing the exact end of a trend is hard and I would not waste my time on it, but I focus on earning more per trade with this tweak.
Instead of simply letting the trade develop, I follow it and wait for another entry opportunity after my trade is profitable. For example if I buy 2 lots of EURUSD at 1.1500 and the trade develops as predicted, I will wait for a second entry opportunity 25 pips to 40 pips above that. I will enter a second buy of 2 lots between 1.1525 and 1.1540 and then set my take profit for both open trades between 1.1560 and 1.1575. I do this because over the years I did the math from closed, profitable trades and then checked how much further they could have gone.
It will be different for each currency pair and it requires time to be in a position to check your trading strategy in this manner. Trust me, it is worth it. I was very hesitant at first, but once I learned to trust the strategy and applied this in my smaller live account, my profits started to increase fast. I have two live accounts, one smaller one where I test new adjustments and my big one where I apply my strategy. Do the math, try it and enjoy this Power Punch. Not sure what to trade? PaxForex has some great daily trades which offers a great starting position!