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Do you think 200 pips per month is fine?

  • Post #1
  • Quote
  • First Post: Jul 26, 2007 8:02am Jul 26, 2007 8:02am
Hello guys,
I am a trader since 3 years and right now am wondering which way to take- the long run or the short (scalping) way. Long run for me is when I open a long/short position, I leave it open for between 1-2 days. This strategy brings me roughly 200-300 pips monthly, trading mainly EUR/USD, GBP/USD. Actually, I initially started scalping using candles for a prediction. Now I am back to scalping, but mainly using divergences with RSI. WIth this method I am breaking even, but am using it since 3 weeks, for I just cannot wait when the market is choppy and can't use my "long-run" strategy. What would you advise me, keep up with my "long-run" strategy, or try to improve my scalping techniques and make a profit in trending/trading markets.
Thanks for your replies in advance,
Quoting nasko
Hello guys,
I am a trader since 3 years and right now am wondering which way to take- the long run or the short (scalping) way. Long run for me is when I open a long/short position, I leave it open for between 1-2 days. This strategy brings me roughly 200-300 pips monthly, trading mainly EUR/USD, GBP/USD. Actually, I initially started scalping using candles for a prediction. Now I am back to scalping, but mainly using divergences with RSI. WIth this method I am breaking even, but am using it since 3 weeks, for I just cannot wait when the market is choppy and can't use my "long-run" strategy. What would you advise me, keep up with my "long-run" strategy, or try to improve my scalping techniques and make a profit in trending/trading markets.
Thanks for your replies in advance,
Welcome, this makes a change from most first posts.

Why change a winning formula? I'm a long term trader by preference so my first instinct was to say don't change. There's plenty of us on this board would love that sort of track record.
In answer to your question, why not take some of your main fund, open a 2nd account strictly for scalping. keep your long trade account running as is.
I expect you'd thought of that anyway, so I'll butt out
200 pips per month is a very good milestone. If you keep those pips and take another 200 every month, it's more than enough!

My advice: Don't change your strategy. Polish those skills that already are bringing you profits.
Absolutely agree with the previous posters: 200 pips a month, if moreless consistent, is a wonderful result that will bring you tons of money with the proper money management and position size.

Stick at it.
If it were me, I would continue my longer term strategy as it is. Your results are great.
If you need to be in the market all the time, open a micro account and try to develop your scalping with tiny amounts of capital while your longer term strategy is working in the background.
Just be sure to use discipline, keep your scalping small (tiny) until your results are consistently positive, and don't let your scalping burn up the entire results from your proven longer term strategy.
Normally I would say forget about scalping, but you've been trading a while and are having great results, so maybe you can carefully add another tool to you bag. Just don't let it jeopordize your proven method.

All the best
Just to be clear, your results are great and the advice that Dexis and Wtb left is very hard to argue.
My real point is this;
Because you are seeing success, don't abandon your method. IF you choose to add a method, do it carefully.
Thanks guys,
the problem with using both methods is that they both need my whole attention. Or at least I am worried that if I open another account, just for scalping, then I might lose my vision for the long term. Because it's all about the right vision and proper money management and consistency. Honestly, I like better scalping, because it's more dynamic. On the other side, with my other strategy (long-run) I am opening around 2-4 positions per month. The rest of the time I am waiting for the proper setups. I will be happy if anyone of you has had the same wonderings and he/she has the answer to that. Thanks for your responsiveness,
>> Nasko
Quoting nasko
Thanks guys,
the problem with using both methods is that they both need my whole attention. Or at least I am worried that if I open another account, just for scalping, then I might lose my vision for the long term. Because it's all about the right vision and proper money management and consistency. Honestly, I like better scalping, because it's more dynamic. On the other side, with my other strategy (long-run) I am opening around 2-4 positions per month. The rest of the time I am waiting for the proper setups. I will be happy if anyone of you has had the same wonderings and he/she has the answer to that. Thanks for your responsiveness,
>> Nasko
As it seems your long-term plays are few and far between I can't imagine it takes you that long to check those charts, surely opening a second account for scalping is still a better option while you find your feet again in the short-term charts.
My fear is that with the higher risk, and increased spread/commission costs, you get with scalping, a bad run could cost you a lot of money.
And although you're not new to trading the temptation to up your leverage, or over-trade to get some losses back, might creep back in to destroy your current high level of discipline.
Nasko

I use to be a position trader and am now a scalper.
I found that position trading is good and still do that sometimes but enjoy scalping the market as when compounding is added the returns are fantastic.

Until you develope a system that your happy with for scalping you should continue your position trading.

Play with the scalping system until you have developed it enough to get serious with it, then test out your skill with small amounts of money.

Go Getter
Go Getter When Trading Its All About "WHO YOU ARE BEING"
Remember,

it is not about pip gain per month, it is about % gain per month.
Hello Peter,
I am going to cite you here:

"And although you're not new to trading the temptation to up your leverage, or over-trade to get some losses back, might creep back in to destroy your current high level of discipline"

I think that this is what I am most afraid of. Hopefully I could resist the temptation to scalp and increase the number of pips per month in my "long-term" system. Probably that would be possible with the GBP/JPY pair, what do you guys think? Do you have a favorite pair which you are following up, or you trade whichever pair gives you a good opportunity,

Cheers
Quoting nasko
Hello Peter,
I am going to cite you here:

"And although you're not new to trading the temptation to up your leverage, or over-trade to get some losses back, might creep back in to destroy your current high level of discipline"

I think that this is what I am most afraid of. Hopefully I could resist the temptation to scalp and increase the number of pips per month in my "long-term" system. Probably that would be possible with the GBP/JPY pair, what do you guys think? Do you have a favorite pair which you are following up, or you trade whichever pair gives you a good opportunity,

Cheers
so this is purely what I pick up from other threads, but it seems to be getting harder to scalp nowadays. You may find that you get more and more re-quotes, or marginal delays in processing orders etc.
If you trade through an ECN there may be fewer problems but I suspect the position size you need to ensure straight to market trading may be quite large .
As a very huge lot trader, this question is easy to answer. It is not the pips that makes you the money, it is the lots behind the pips.


Learn more on how to use lots for trading. If you use enough lots, 10 pips monthly is enough.

Check out lots...
I agree with your last post. I am sure that the lot size does matter, but that's not the way my trading system works. I was recently looking at the post by Tkimble: "Part-time wealth building system- Weekly Scalping" and was wondering whether any of you guys here have tried it. If so, was it successful for you...? It sounds pretty awesome and easy, but without backtesting it, I am willing to think that it's going to give many whipsaw signals. On the whole, it looks more like gambling to me. Do you agree or I might be misunderstanding the concept.
Thank you again
OK, let's transform my question percentagewise: Do you think 40-50% monthly return is a fine return. I am wondering, because I've recently found this forum and everybody here seems to be making enormous pip gains. I know it's about the percantage, so that's why I am putting it that way. So, what do you think about 40-50% monthly?




Thanks
Quoting nasko
OK, let's transform my question percentagewise: Do you think 40-50% monthly return is a fine return. I am wondering, because I've recently found this forum and everybody here seems to be making enormous pip gains. I know it's about the percantage, so that's why I am putting it that way. So, what do you think about 40-50% monthly?




Thanks
I belive most of us here would be more than happy if we could make 40-50% profit / year.
I Love Forex Factory!
  • Post #17
  • Quote
  • Edited 5:34am Jul 30, 2007 5:10am | Edited 5:34am
for example:

if you're making the 200 pips using 50 pip stop losses, that's too risky in my books. Since a couple bad trades and you are negative for the month.
Quoting nasko
OK, let's transform my question percentagewise: Do you think 40-50% monthly return is a fine return. I am wondering, because I've recently found this forum and everybody here seems to be making enormous pip gains. I know it's about the percantage, so that's why I am putting it that way. So, what do you think about 40-50% monthly?




Thanks
you found everybody make enormous pip gain bcs who lose pip not posting about their lose, and who make pip proudly show his performance and become active, who still lose become passive. that's majority.


200 pip with full equity lot is not enough if you are james bond who have ideology "The World is not enough".
EA Programmer for Hire
Quoting nasko
OK, let's transform my question percentagewise: Do you think 40-50% monthly return is a fine return. I am wondering, because I've recently found this forum and everybody here seems to be making enormous pip gains. I know it's about the percantage, so that's why I am putting it that way. So, what do you think about 40-50% monthly?

Thanks
If you look at most, if not all, the main currency pairs there have been substantial trends of late. Even for relative newcomers it's not hard to make pips during a period like this when USD has had inherent weakness, and people trade to take advantage of this. For many it's been a lucky period, and they post because they think they have trading sussed, and they're proud of their skills.

Those of us who've been around awhile know that somewhere, sometime, someone's arse is going to be bitten!

Even my account growth has lured me into a false sense of security, and, at the moment, I'm paying the price. this might be the lesson I need to wake up and realise I wasn't quite as sharp as I thought I was.

No harm in having dreams and ambition, but in FX you're in an environment that is beyond your control, most of the time, and trying to run too fast, too soon, will put you out of the race before you've found the right pace to put you over the winning line.
Quoting PeterFM
If you look at most, if not all, the main currency pairs there have been substantial trends of late. Even for relative newcomers it's not hard to make pips during a period like this when USD has had inherent weakness, and people trade to take advantage of this. For many it's been a lucky period, and they post because they think they have trading sussed, and they're proud of their skills.
Exactly Peter. The environment has been kind lately--a rising tide that lifts all boats. I've had some tremendous gains in July.

Now comes the hard part, trading with bold money. Bold money can be more dangerous than scared money because there is usually a little more of it to lose.

Still, I'll take the abundance any day!
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