Is 5 pips enough for you? | Forex Factory

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Is 5 pips enough for you?

  • #1
  • First Post: Mar 25, 2020 12:42pm Mar 25, 2020 12:42pm
Good morning all,

I have taken the time to read many of the threads here within this community and I find it shocking that no one focuses on simply trying to gain 5 pips max per trade. I never understood the premise that gaining "more pips" is easier than "small pips". Some people even justify the fact that the "spread" prevents most from scalping or aiming for small pips. I would like to hear some feedback prior to me loading an account.

cheers
Threesome Daddy
  • #2
  • Mar 25, 2020 1:24pm Mar 25, 2020 1:24pm
Hello

I think that as You trade more and more ...you see that 5 pips max per trade is pretty unprofitable. As You said, spread and commisions are eating most of our profit. Add taxes and other fees and You'll leave it there with almost no profit. The next thing is just being greedy.
It all comes down to make a try and match Your style to trading. Have fun
Hard choices, easy life. Easy choices, hard life. ~ Jerzy Gregorek
  • #3
  • Mar 25, 2020 4:49pm Mar 25, 2020 4:49pm
Quoting majkel149
Hello I think that as You trade more and more ...you see that 5 pips max per trade is pretty unprofitable. As You said, spread and commisions are eating most of our profit. Add taxes and other fees and You'll leave it there with almost no profit. The next thing is just being greedy. It all comes down to make a try and match Your style to trading. Have fun
Thank you kindly for your response. What if one mixed complex money management into the 5 pip strategy?
Threesome Daddy
  • #4
  • Mar 26, 2020 6:55am Mar 26, 2020 6:55am
Quoting SingaRich
{quote} Thank you kindly for your response. What if one mixed complex money management into the 5 pip strategy?
If You combine Money management with strict trading plan and with psychology - You have big chances to win.
But thats only theory. In practice you should be aware that on Market "Anything can happen" ~M.D , and You cannot control everything. Even the best trading plan could fail in order to such events like week or two ago.

Cheers
Hard choices, easy life. Easy choices, hard life. ~ Jerzy Gregorek
  • #5
  • Apr 3, 2020 3:42am Apr 3, 2020 3:42am
Good morning once again. I have uploaded an old account I had with hopes of doubling the account every week using my 5 pip system.

I am currently looking to long EU if on the 1m, the price moves up to 1.0820 should that occur, then i will risk 20% of my account to earn 10%
Threesome Daddy
  • #6
  • Apr 3, 2020 5:24am Apr 3, 2020 5:24am
Quoting montemike
Hello I think that as You trade more and more ...you see that 5 pips max per trade is pretty unprofitable. As You said, spread and commisions are eating most of our profit. Add taxes and other fees and You'll leave it there with almost no profit. The next thing is just being greedy. It all comes down to make a try and match Your style to trading. Have fun
Hi, if you trade positively and forget greed, you can live quite easily off 5 pips per trade day.
I know i do/did it.
5 points after spread, commissions? is good.
As we have heard a million times, good method and stick to it.
NO BIG DREAMS, NO GREED.....
trade well all, Stay Safe,
SEE LINE,TRADE LINE..PRICE HAS TO GO SOMEWHERE,,, PRICE WILL GO SOMEWHERE.
  • #7
  • Apr 3, 2020 5:53am Apr 3, 2020 5:53am
just stumbled across this forum on the main page, i only trade gbpusd and i scalp, i look for no more than 10 pips a trade max, most of my trade last a few minutes at this current position in time with where the market is at even less than minute of some of these candle sticks. all im going to say is if you have the patience and the time and dedication you can be profitable and make a killing ,im no pro or no millionaire but that is my end goal, last week i pulled just under 800 pips and os far this week ill post below. one thing to keep in mind, is if you do this, make some rules that you abide by, for instance i NEVER have more than 3 scalps open at a time, and a few more, you chose yours and dont get swayed by others opinions..

trade safe and well

Joe
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  • #8
  • Apr 3, 2020 5:55am Apr 3, 2020 5:55am
i would also like to add for my point above, i pay for a vip trading account so i can get a spread of 2, as for scalps i can get an even better execution, again this comes at a price which is taken out of my profits each month, however i maintain profit on a regular basis and hoping for it to be my full income in these next few years
  • #9
  • Apr 3, 2020 6:08am Apr 3, 2020 6:08am
Most of my trades are 5 pip or less, while it's is possible to live on 5 pip per day.
The broker cost will eat up around 20% of your profit and increase all lose by 20%, so unless you have a significantly less you will like to blow your account
pretty fast.
Pretty sure my broker made way more money off me than I made off the market.
  • #10
  • Apr 3, 2020 6:11am Apr 3, 2020 6:11am
Quoting AmmaBoss
Most of my trades are 5 pip or less, while it's is possible to live on 5 pip per day. The broker cost will eat up around 20% of your profit and increase all lose by 20%, so unless you have a significantly less you will like to blow your account pretty fast. Pretty sure my broker made way more money off me than I made off the market.
sounds like a dodgy broker, as happens.
SEE LINE,TRADE LINE..PRICE HAS TO GO SOMEWHERE,,, PRICE WILL GO SOMEWHERE.
  • #11
  • Apr 3, 2020 6:17am Apr 3, 2020 6:17am
Quoting billytt
{quote} sounds like a dodgy broker, as happens.
just about to put the same answers, i dont get charged nay commission for my trades, and I trade around 2 million worth of cable stock a month, the only thing that charges is swap if i hold past 10pm which i never do as i scalp, i pay a monthly subscription for the account, but that amount i surpass easily, gonna knock on wood now hahaha lol


Joe
  • #12
  • Apr 3, 2020 6:17am Apr 3, 2020 6:17am
Quoting billytt
{quote} sounds like a dodgy broker, as happens.
Nope, assuming spread is .7 which is really low and no commission.
5 pip SL / 5 PiP means every loss is 5.7 pips and every win is 4.3 pips.
Assuming after 100 trades with a 60% win rate.
4.3 x 60 and loss 5.7 by 40 = net 46 pips.
while your broker made .7 pip on every trade = 70 pips
this is assuming all things are even.
and the individuals have an edge that accounts for 10% which is a lot, I would take 60/40 bets all day.
  • #13
  • Apr 3, 2020 6:23am Apr 3, 2020 6:23am
Quoting AmmaBoss
{quote} Nope, assuming spread is .7 which is really low and no commission. 5 pip SL / 5 PiP means every loss is 5.7 pips and every win is 4.3 pips. Assuming after 100 trades with a 60% win rate. 4.3 x 60 and loss 5.7 by 40 = net 46 pips. while your broker made .7 pip on every trade = 70 pips this is assuming all things are even. and the individuals have an edge that accounts for 10% which is a lot, I would take 60/40 bets all day.
Ok my apologies, i have spread. i trade for 5 points/pips, which equates to 5% every trade day.

i trades stats/odds/percentages and it is all numbers.
Nothing to do with my skill with forex Knowledge, my knowledge is nil. lol.
Trade well , perhaps you might be too clever?
a lot of clever people cannot trade...
Peace.
SEE LINE,TRADE LINE..PRICE HAS TO GO SOMEWHERE,,, PRICE WILL GO SOMEWHERE.
  • #14
  • Apr 3, 2020 6:24am Apr 3, 2020 6:24am
Quoting AmmaBoss
{quote} Nope, assuming spread is .7 which is really low and no commission. 5 pip SL / 5 PiP means every loss is 5.7 pips and every win is 4.3 pips. Assuming after 100 trades with a 60% win rate. 4.3 x 60 and loss 5.7 by 40 = net 46 pips. while your broker made .7 pip on every trade = 70 pips this is assuming all things are even. and the individuals have an edge that accounts for 10% which is a lot, I would take 60/40 bets all day.
im hella confused now haha, i wouldnt take the spread into consideration, i would have a 5 pip tp and sl in your scenario from your entry? say spread is 10 on cable,

i bought at 1.22720
my entry woudl be 1.22730
my tp would be 1.22780
sl. 1.22680


THIS IS NOT A SIGNAL FOR ANYONE SCANNING THROUGH
  • #15
  • Apr 3, 2020 6:27am Apr 3, 2020 6:27am
Quoting joesherwood
{quote} just about to put the same answers, i dont get charged nay commission for my trades, and I trade around 2 million worth of cable stock a month, the only thing that charges is swap if i hold past 10pm which i never do as i scalp, i pay a monthly subscription for the account, but that amount i surpass easily, gonna knock on wood now hahaha lol Joe
yep, i forgot about keeping overnight.
That is a charge , but thats life.
Trade welll.
SEE LINE,TRADE LINE..PRICE HAS TO GO SOMEWHERE,,, PRICE WILL GO SOMEWHERE.
  • #16
  • Apr 3, 2020 6:27am Apr 3, 2020 6:27am
Quoting joesherwood
{quote} im hella confused now haha, i wouldnt take the spread into consideration, i would have a 5 pip tp and sl in your scenario from your entry? say spread is 10 on cable, i bought at 1.22720 my entry woudl be 1.22730 my tp would be 1.22780 sl. 1.22680 THIS IS NOT A SIGNAL FOR ANYONE SCANNING THROUGH

too late.lol
SEE LINE,TRADE LINE..PRICE HAS TO GO SOMEWHERE,,, PRICE WILL GO SOMEWHERE.
  • #17
  • Apr 3, 2020 6:33am Apr 3, 2020 6:33am
Quoting joesherwood
{quote} im hella confused now haha, i wouldnt take the spread into consideration, i would have a 5 pip tp and sl in your scenario from your entry? say spread is 10 on cable, i bought at 1.22720 my entry woudl be 1.22730 my tp would be 1.22780 sl. 1.22680 THIS IS NOT A SIGNAL FOR ANYONE SCANNING THROUGH
If you buy at 1.22720 the market price is 1.22720, this is why you start off every trade negative as the entry is always above or below the actual price.
Therefore to win at 1.22780 the market would need to move 6 pips
and to lose at 1.22680 the market would only need to move 4 pips.
do the matters with a 60/40 win/loss and the broker still takes over 1/2 of your profits.
you must consider the spread as without an edge the odds of you winning these trades are sub 50% always.
  • #18
  • Apr 3, 2020 6:46am Apr 3, 2020 6:46am
Quoting AmmaBoss
{quote} If you buy at 1.22720 the market price is 1.22720, this is why you start off every trade negative as the entry is always above or below the actual price. Therefore to win at 1.22780 the market would need to move 6 pips and to lose at 1.22680 the market would only need to move 4 pips. do the matters with a 60/40 win/loss and the broker still takes over 1/2 of your profits. you must consider the spread as without an edge the odds of you winning these trades are sub 50% always.

its 5 AFTER SPREAD,,,,, Look at it as like how we pay taxes. Net result....
SEE LINE,TRADE LINE..PRICE HAS TO GO SOMEWHERE,,, PRICE WILL GO SOMEWHERE.
  • #19
  • Apr 3, 2020 6:49am Apr 3, 2020 6:49am
Quoting billytt
{quote} its 5 AFTER SPREAD,,,,, Look at it as like how we pay taxes. Net result....
Yes, I think we all understand that.
Was just showing that once you account for the spread which is my only cost associated with trading, at 5 pip Tp and Sl.
You pay more your broker more than you made ( assuming you are profitable )
  • #20
  • Apr 3, 2020 6:54am Apr 3, 2020 6:54am
Quoting AmmaBoss
{quote} Yes, I think we all understand that. Was just showing that once you account for the spread which is my only cost associated with trading, at 5 pip Tp and Sl. You pay more your broker more than you made ( assuming you are profitable )

ok
SEE LINE,TRADE LINE..PRICE HAS TO GO SOMEWHERE,,, PRICE WILL GO SOMEWHERE.
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