A month or two passed and Mindy and I were now solidly committed to becoming forex traders. We signed up for an online course with Peter Bain and began our forex education odyssey. We learned that railroad candles at resistance or support levels were money in the bank. We learned about pivot points, measured moves, DeMark trendlines, COT index and Guppy moving averages. Peter was actually a really good teacher. We followed up with Clay Marafiote who taught AIME and we traveled to Los Angeles for a 3 day workshop. From him we learned about crossing of moving averages, separation and angle of moving averages and chart patterns. We opened up a demo account and started doing our own trading. We are both very smart women and we thought, geeeez, if this guy in Arkansas can be making 10-20% a month, surely we can do half as well as he is doing and in probably half the time!
We knew that it would take us a while to master this new skill so while we were learning how to trade, we thought that if JR was for real, he may as well be making some money for us until we could get up to speed for ourselves. We put our web design business on hold and we traveled to Arkansas to see for ourselves what JR was really doing. We felt that we now knew enough to be able to tell if JR was really trading. He lived in a very small town in a triple wide modified trailer on a hunk of land with his brand new tractor that his wife had bought him. He was about 65 years old and a missionary who supported an orphanage in Honduras. He had a young Costa Rican wife and was raising her two kids. He wore jeans with his cell phone on his belt. And when we rang his doorbell at 2am, which was the London Open there, he had his 3 monitors up and running and he welcomed us into his office.
We sat with him for 2 nights and watched him trade the London session. He looked like a good trader. He had studied with the same teacher we had and he was well respected by that teacher and his peers from the class. We saw that he was watching several currencies at the same time and it looked like he used stops most of the time. And he was placing orders and diligently studying his charts, although sometimes he couldn't seem to remember what was support and what was resistance.
But at the time we figured that that wasn't a big deal since somehow he was still consistently making money. After all, my brother was still pulling a healthy draw every week from his account. The two nights we were there the market was kind of slow according to him, so we didn't see him take many profitable trades. And on our 3rd scheduled night, he opened the door and explained that he had shingles and apologetically excused himself from trading. We wondered if we had asked him too many questions about his trading style or made him nervous when we asked why he hadn't placed a stop.
We came home and felt pretty certain that he was the real deal. JR hardly ever showed a loss. We wanted to jump on this boat before he closed the window of investment opportunity. He had told my brothers that he wanted to retire at 70, so we had just 5 years to be on board with him. We were doing the math and we knew that this was our ticket to success. Plus we would combine this with what we ourselves would be making and our dreams would be realized in a very short time.
We each took a chunk of our savings and immediately wired it to him. In the meantime, more of my brother's friends jumped into the pool. My Mom put a big hunk of her savings in and so did another brother and my sister. We were all excited. At the end of every week, we would get a statement from him that showed our balance growing, growing and growing. We would call each other and be so excited and share our dreams of what we would do with our new found riches. In the meantime, JR would tell us stories of his broker Coes FX flying him to New York, picking him up in a limo and wining and dining him because he was such a good client for them. Those were the golden days. In less than a year JR was now managing close to 40 million dollars. To be continued…
Here are direct links to the other four parts of this series:
Confessions and Revelations of a Forex Trader – Part 1 of 5
Confessions and Revelations of a Forex Trader – Part 2 of 5
Confessions and Revelations of a Forex Trader – Part 4 of 5
Confessions and Revelations of a Forex Trader – Part 5 of 5