Barry Thornton’s 5th secret of Forex trading success – Create a Forex business

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Barry Thornton's 5th secret of Forex trading success - Create a Forex business

 

Creating a positive cash-flow Forex business / investment

Round about the time Barry started trading the Forex Market the book “Rick Dad, Poor Dad” had become very popular. There were many aspects from the series that made a big impression on Barry. One of the concepts were: “An asset is something that makes you money”. If something causes you to lose money or it costs you money to run it is a liability. So suddenly regarding his car and house as assets became questionable. It was there for very important that his Forex Trading business became an asset as quickly as possible.  Not only would that create an asset but it would create the cash flow needed to fund other activities he was quite keen on – property investing and development and travel.

The other concept was that for a business to be an asset it should generate an income independent of the owner.  If it was dependent on the owner it would not be a business. It would just be a form of self-employment.

Trading environment

After secrets 1 to 4 were in place, he set out to setup a special trading room environment which could be used for his Forex trading business. This trading room will be separate from his house and a very private area where he and his traders would not be disturbed. A constant reminder to the traders where their focus was to be.

The trading room is spacious and has his trading technique detailed on the walls around the room.

There are dedicated trading screens for the traders but there are also 4 to 5 over sized information screens giving constant information about the Forex Market mainly in the form of analysis charts.

There are always 2 people in the trading room during trading hours.

Using traders to mechanize his trading

He had developed a very labor intensive Forex trading technique which required very strong and continuous focus and attention to trade. He very soon realized that he could not trade 6 to 8 hours a day for 5 days a weeks with the focus and concentration needed.

So he went about recruiting traders to trade his system for him. He had a very interesting approach doing this. He very specifically looked for potential traders amongst people who have never traded before. The reason for this was that Forex traders with any experience will have built up damaging baggage that would be very difficult to reprogram. Also training inexperienced traders was much easier as he could train them to use his system 100% without too many distracting questions or ideas.

He was looking for traders who were conformist. Someone with too many bright ideas on how things could be done in a better way would become bored and distracted all the time. Interestingly enough he found ladies to be much better at being conformists and following trading rules way better than men who let their egos get in the way of seeing trading opportunity’s and situation objectively.

Trading activities

So he built a little team of 3 traders plus himself.

There are always 2 people in the trading room during trading hours. One trading and one supporting. There are subjective elements in the trading system and when a trader has to make a subjective decision it was referred to the trader doing the support role. The support trader would not day trade but focus on the bigger market to identify trading opportunities that the active trader may miss. The support trader would also trade but focus on the swing trades requiring longer term time frames. So they work as a team.

The main activities were:-

  • trading the European market for 4 to 5 hours,
  • trading the US market for 4 to 5 hours,
  • reviewing trades made and postmortem conclusions
  • over-viewing the Forex market on an ongoing basis during trading hours
  • Reviewing trading at the end of trading at the end of the week to identify missed opportunities and planning for the next week.
  • Reviewing trading at the end of trading at the end of each Wednesday to identify missed opportunities and plan for the next week.

To keep the team fresh at all times they never traded longer than 4 to 5 hour shifts. All had to attend the mid and end of week meetings. The above activities were shared between the 3 traders and Barry. Barry was the 4th trader and would play a part in the above trading activities as required. When Barry or one of the other traders were away the duties would be split between 3 traders.

Trading strategies and techniques

Barry’s team trade very simple techniques based on Support and resistance, wave counting, momentum etc.  We will be reviewing these techniques and a lot more detail in the course of the next few weeks. Many of these techniques are covered in some of our older courses. The Long Candle Forex Technique, The WATO trading technique, The Financial Turning Point, the Multiple Moving Average course, The magic momentum course and in the Simple-N-Easy Forex Series.

Convenient structure

This structure gave Barry flexibility to have a Forex trading business without it tying him down. So he had time to spend on other non-Forex activities like property investment and travel.

The Forex team would earn a share of the total income generated and Barry would allocate the portions based on competency and experience and impact on the overall results.

Barry would supply all the trading capital used. Because of the high levels of trading capital used the supporting traders made much more from their share of income than they would trading independently.

So Barry’s system was highly trainable and highly trad-able by disciplined traders.

He had created a perfect Forex trading business asset generating a great cash-flow.

How you can do this too

Form an alliance or trading partnership with one or more trading buddies. There is no reason why you cannot establish the same trading environment as Barry has, even on an online basis.

Next steps

Now that you have a good feel about the way Barry has developed his Forex business using secrets 1 to 5 we will move onto the Forex trading techniques used.

4 Comments

  • Shane Bullmore

    Reply Reply March 10, 2015

    I am finding this course very interesting and I am enjoying what I am learning. I just wish the units would come out abit faster. I am really keen to put the whole process into practice

    • info@expert4x.com

      Reply Reply March 10, 2015

      Thanks for your feedback

  • Susan Hansen

    Reply Reply March 10, 2015

    Yes, it has certainly made me be more focused.

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