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About the Author
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I was just like you
Thanks for dropping by. My name is Paul Zavarella, the author of the A Trade A Day Forex Strategy. Currency trading has always been a passion of mine and I was probably like you - a person with an idea but no real way to succeed at currency trading. Day in and day out I opened my trading software, shopped for a trade and threw my money at the board.
I was losing most of the time, but winning enough to remain optimistic. Until one day I did the math and was shocked to find out that I HAD BUSTED MY ACCOUNT FIVE TIMES and lost $2,500.46!
How could that be?! I was doing everything I was taught by the online forex courses and books I had read. I followed the advice of all the trading "experts," so how could I possibly be down $2,500?
The reality hit me like a sledgehammer. I had recently been downsized out of my job as a TV producer (with a large very famous basketball league) whose name I cannot mention because of legal reasons.
I had no money coming in, but always thought I'll just make up that lost income through forex trading. I could not have been more wrong, plus now, I was in serious trouble.
I needed money, but the job market was dead and my forex trading was only adding to the problem. What was I going to do?
There was an answer, I just had to find it
One day, while I was skimming through one of my old forex books, I was reading about the author's opinion of the Law of Averages.
He was talking about how he believes its always an advantage to find a market movement that is based on the Law of Averages rather than technical analysis or fundamental news. "The problem," he said, "lies in that the market is so random, finding those Laws of Averages are elusive at best."
"No kidding Einstein," I thought.
I've always been a believer in the Law of Averages and kicked it around in my head for a couple of days, when I slumped down on the couch with my laptop and was studying the daily chart for the GBP/USD, which happened to be on screen because it was the latest pair I just finished losing money with.
I lost money with all the pairs, but the GBP/USD was my favorite because I seemed to lose it faster with that than the others pairs. lol.
I was thinking about the Law of Averages and decided that even though the market is random, it is also completely about the Law of Averages. I agreed with the author because everytime the price moves there's an average involved, but how do you recognize an 'average' move and apply it to a pattern? That was the problem.
Right about then, my eyes started to recognize a definite pattern. It was unmistakable. The GBP/USD (British Pound/U.S. Dollar) pairing moved in an almost perfect daily pattern.
Eureka moment!
I applied the pattern to the others USD pairings; Japanese Yen, Australian Dollar, New Zealand Kiwi, Swiss Franc and the Euro. They all move in the same consistent pattern.
I broke out a notepad and pencil and started looking at ways to trade that move. What I came up with is a position that is ready for the move no matter if the price goes up or down and "lives" inside of that move. I applied it to all the pairs and none of them worked - they were too volatile and chaotic - except one.
When I went back to the GBP/USD and applied the Law it worked! Not 100% of the time, but darn close and a lot more often than the other pairs. It definitely occurs enough of the time to make money.