Can you really make 20 to 50 pips per day in forex trading?… As a mere mortal! and having grown around professional traders and studying trends extensively as a part of curriculum my opinion is that it is not a wise idea to have an objective of making certain pips a day.
There is no way to consistently make ‘x’ pips each day. There are days when there is simply no movement or other times where movement is sharp and seemingly random.
The goal is to make disciplined trades, based on the various fundamental and technical factors in consideration and even that may not work your way.
The best traders understand that their best strategies wouldn’t work and there is always a possibility to make loss in each trade.
The major problem with being consistetent with a few pips is there always is an opportunity to make profits if the direction continues, why stop it. Rookie mistake amateur traders commit is that they run their losses longer thinking that the market will magically work to their favoured 50 pips profit there by losing a lot of their earned profits and soon cut into their initial investments.
What you want to do is cut your losses short and run your profits, so your trade set-up should achieve the goal, to achieve 50 pips, you shouldn’t run a stop loss of 200 pips, market works in funny ways.
Just a little tip: don’t think in terms of pips – pips mean nothing.
A trader who makes 100 pips can make less money than a trader who just makes 10 pips. As a trader, you should start thinking in terms of %, and even better: set your risk in relation to your reward.
What most traders get wrong is that you don’t have to make money every day to make money over the long term.
if you play your RISK : REWARD smart and combine it with your WINRATE, that’s when you will start seeing results.
- Accept losses as a part of the strategy and look to minimise them, so that you don’t need to be glued on to the screen all day, once in the morning to check the orders and once in the night to see how they are doing, unless there is an opportunity to enter into a trade during the day.
- Stick to your trading plan, whether your order size, your leverage and your trade odds.
- Always remember, if this were a quick way of making money everyone would be doing this, law of large numbers work and 99% of profits go to 1% of the population, so the odds are skewed against you!
- Oh yes, always ride the wave, go with the market trend.