5 Pips Per Trade

Hi,

I have seen loads of systems, keep up the good work, though I am looking for a system that will net me 5, pips per trade, one trade a day.

I see the market move loads throughout the day and I am unable to revise a good system that will net me these 5 pips... grrr.

Can anyone help me?


Thanks in advance,
Guess

I understand your frustration guess, and due to the nature of your query you sound like you are new to forex. My advice would be to have a look around at the different systems here and find something you like.

Next I could tell you next to throw some real money in and give it a try. You will undoubtedly lose it but it should provide you with some invaluable experience.

On the other hand, i would strongly recommend you read, and read alot. Not about strategies, but things like money management, risk, about treating forex trading like a business. About understanding and dealing with the good times and the bad times. By all means get involved if you can afford it, immerse yourself in the forex, there is a damn lot to learn.

I'm not being negative here, but welcome to a long and rocky road to what end? Only you'll find out..

Hi Guess,

Pick one pair....use a break out of the previous days hig/low...Bstop at the high and a sell stop at the low....a pip or 2 on either side....set your take profit and a stop....won't hit every day, but enough....take a look at daily charts.....hell, you can probably do this with a few pairs. Or, I have used a OS/OB on the RSI set at 80/20 with 14 periods....lots of ways to get only 5 pips.....some days, you can just throw a dart!!!

The yen pairs did some nice break out.....might have retraced but you are only seeking 5 pips.....I got 40 on the usd/jpy last night

aud/usd broke down but retrace.....FOMC week....no big moves....eur.usd has been tough...though it did break south for 8 pips last night....watch your spreads doing this....more than 2 and small breaks won't work. This is a set and forget.....I use this when i can't get screen time. Stop loss up to you.

Any of them will "work". Our job is to develop our ability to implement
them. Many, many waves of pips just rolling by all day long, right.
So close, yet so hard to grab onto!
Work hard!

My $.02.

FXS

The problem with aiming for 5 pips a day is a common one.

I have read various "gurus" telling me what 5 or 10 pips a day will get me in compounded interest. The one thing they don't tell you is the truth.

The truth is, sometimes you are going to be wrong on a trade. Period.

So, let's say you are trading the GBP/USD pair. I have had two different brokers, both had a spread of 4 pips. So right off the bat, you are really trying to gain 9 pips in price.

Also, you have to realize that if you were to close out going down just ONE PIP, you just lost 5. Guess what? You better be right tomorrow. And what's the prize for being right tomorrow? Getting to recover your loss from today.

So you are at break even in two days.

And truthfully, you can't just close out after going down the spread -1 pip. So.....what are you to do? You want to give it 10 pips room? Now if you are closing out winning trades at +5, then every loss you take is going to need two wins just to break even. You already need to win 66% of the time.

What happens if you lose two in a row? Then you need four wins to make it back.

Not trying to be harsh, just trying to be upfront with the issue with limiting your wins. It's your losses you should be limiting. Keep them small.

Because I can guarantee you one thing: A lot of times you are going to watch your 5 pip trade go on without you. Then, you get to see it would have been easier to just ride it out to a 20, 30 , or even 100 pip gain.

Good luck though, and trust me, I looked for the same thing, so I know what it feels like.

Clockwork71

Successful, profitable, professional traders do not have a goal of banking 5 pips per day. Learn from the pros..................

Couldn't agree more. Your whole post is excellent Clockwork.

I know the feeling too. When you look at a chart with a 130 pip move you think to yourself, why can't I just take 5 or 6 pips from each of these? I'm not greedy, I don't want all the pips, just a few!

Your explanation about the spread and the stops is very concise. When you limit your profits, you need a more "accurate" system since your tighter stops being hit all the time will eat away a greater share of your wins. You cannot possibly afford too many losses with a goal of 5 pips per trade. Lets think logically, if you had such an accurate system, why on earth would you limit your wins?? Also, if your system was so accurate at generating these great entries, wouldn't it also indicate when to exit as well?

Additionally, if you increase your stop to "let the trade breathe", your stops probably won't be hit as often, but will make a far more significant dent in profits.