I wanted to come to the forums and present myself here as more of a “newbie” with a question/concern.
First, a tiny backstory so this makes a little more sense:
I was introduced to Forex about 5 years ago or so by my co-worker. I worked at a factory as a Security Guard. Because there are multiple computer screens, my co-worker happened to be looking through some Forex charts that I had never seen before and that’s how I was introduced.
This guy had a beat-up old car and was in debt and had a house that he still had a good ways to pay off.
He basically gave me a quick rundown of Forex and directed me here to Babypips. That’s where I went through the School of Pipsology and began my journey.
5-ish years later and I live in another state from my co-worker. I hadn’t talked to him in forever and so I email him just to see how he’s doing and talk about Forex and show him pictures of my son.
I get an email back and it was an email I certainly did not expect.
He basically let me know that he’s doing really well, is completely debt-free, has bought a second house and three brand-new vehicles and has a massive bankroll.
Since he knows how I am and how skeptical of a person I am, he showed me his accounts, the trades he makes and the amounts he is trading with.
This was an eye-opener for me. Bottom line was that he is doing very well for himself.
This is when I started to obsessively try and pick his brain for knowledge to how he trades.
[B][U]Here’s the problem:[/U][/B]
The way he trades is completely different from what I’ve been taught. Not only that, the percentage he makes per month is massive. (anywhere from 20% to 100%+)
So he has several trading accounts, each with slightly different capital sizes.
One account, for example, has about $100k. On this account, he trades with massive lots of 4,500,000 units and only takes about 10 pips per trade.
His strategy is simple:
Plot Support and Resistance from a Top-Down approach (Daily S/R, 4-hour S/R, 1-Hour S/R and 10min S/R)
Then plot Trend lines from Top-Down
Then he will trade Bullish and Bearish Engulfing patterns off of the trend lines, support lines AND Psychological levels such as 00,50,20,30,70,80 and he only trades Bullish or Bearish based on which Psych level the candle is at.
His Stop Loss and Take Profits are usually set at 10 Pips each.
One important part of his strategy (which makes this thing impossible to back-test) is that after the Engulfing signal, he waits for the next candle to confirm his move by waiting until the 4-7minute mark and if price is going his way, he gets in, takes 10 pips (each pip being worth about $450 each) and gets out.
He does this several times throughout the day and has been making an average of about $16,000 - $28,000 per day.
I have been skyping with him lately and trying to learn his strategy and I am sickened.
As long as I’ve been studying Forex, I have ALWAYS been told that even the most professional of Forex traders make, AT MOST, 3-5% profit per month…
This guy makes way beyond that and has been for some time now.
Why is this the case? If there are people with strategies that are wildly successful out there, why are people on these sites telling us that it’s impossible?
I literally know someone in real life that proves them wrong.
If/when I learn this guys strategy, I want to make it my life’s mission to unveil this myth and destroy the notion that everyone HAS to trade a certain way and only make a measly 3-5% profit per month their entire life.
If possible, I would like the input of those who know what I’m talking about and have some comments on what I’m talking about.