Meanwhile we were diligent and committed students of forex. We traveled all over the country studying with different mentors to learn all the secrets of forex trading that we could. We had given up our other jobs and were living on our savings now. We were focused on exclusively trading forex. We were using beautiful Excel spreadsheets that Mindy made for us to help with our middle of the night calculations for entering trades correctly. We were now entering the forex world of sleep deprivation and we needed all the help we could get with our mathematical computations.
After about 2 years with JR, our account had more than doubled and we continued to add in more equity and watch it compound massively. We would occasionally talk with JR on the phone about his strategy and then we would try hard to reverse engineer it and figure out how he executed such perfect trades. All the while, we were receiving fantastic monthly statements with the brokers' letterhead on top. We even tested withdrawing money from our account on several occasions and we saw that the withdrawals came promptly and without any problems as had been promised.
One of the best things we learned early on about forex was that when you're in a really good long term trade, it's best to bring your stop up to break even and lock in some profit. At the beginning of our 3rd year of investing with JR, we had the feeling that it was time to do the same. We took out our original investment, which was now in six figures, and locked in our break even plus a little profit. We advised my Mom, my sister and my brothers to do the same. One brother had already pulled out enough from his account with JR to build himself a beautiful villa in Costa Rica. The other two brothers, my sister and my Mom opted to keep their money in and compounding. It was tempting to do that too, but we resisted that impulse.
In the meantime, JR's account had been steadily growing through word of mouth. He was now managing over $50 million dollars! Not only did he have some huge investors with millions of dollars, but he also had lots and lots of small investors from Costa Rica and Panama who had invested their life savings of $1,000-$10,000 with him and many more people were in line begging him to take their money.
The monthly statements came just like clockwork and amazingly, JR never had a losing week. We kept thinking about that because the consistency of his wins was so steady and his infrequent and moderate losses were so rare. After all, we had just begun trading ourselves and that was NOT our experience. We couldn't imagine how we could ever be that consistently profitable. We assumed that he was a diligent trader who set a daily goal and then when he hit his profit target, he would quit trading. We used all kinds of rationale to explain his ongoing winning streak.
And JR carried himself with an authentic aura of honesty and trust. He loved his kids and his wife, he lived modestly and he had a humbleness about him. He'd go down to an orphanage in Honduras every year and donate time and money. If you met him, you'd never imagine in your wildest dreams that he could be deceitful. 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 3 of 5
Confessions and Revelations of a Forex Trader – Part 5 of 5