The 1-Pip Question!

Attention ladies and gentlemen, may i introduce to you...

heres my 1 Pip question!

If my account size would be that much big that I could live from with cashing 1 PIP during a month...

...would it be possible SAFELY make 1 Pip with NO risk as long as the world keeps spinning and the birds will singing?

LOL- I've seen the 10 pip a day posts - , but I cannot recall a 1 PIP a month poster. I believe u have broken new ground.

thats great, i am here to stay... 2 Pip Question is comming up soon xD

just kidding...

Depends on your stop.

You could run Jacko's system and you'd very likely see a 1 pip profit for each trade.

yeah i had a look at jackos point of view. it´s auspicious but only if you have a nice solid depot

You could with triangular arbitrage.

Get a job.

i actually do have one and doing fine with it but tnx for that waste of words

You're looking for the holy grail, just in a different form.

You're looking for what's absolutely safe. No such thing in Forex. Whether it's 1 pip or 100 pips, it can go up or down.

Theoretically, you could make a very decent living from one pip per year if your position is big enough. But that's just a different way to oblivion.

ok maybe not without any risk, sure there is always a risk but i think if your position is big enough to life from 1 pip i am sure you will have a good chance to wait 1 year to make this pip like without any risk or gambling the hole year to make much more trades.

for e.g i found some overnight kind of hedge where i mostly like 99% of the time will have a positive overall position within the next day, so if i would tell my system to close every position based on this whenever there is a positive overall profit on the next day (this means 1 PIP) then it should close this positions immidiatley

Hilmy is right.

Ask me when You get there. AND, I Hope you get to the point that you have to Ask Me.{'cause then, I will have a couple of questions too...}

We were messing about today on random pairs. A quick scan of the major pairs, looking at support and resistance on M1 charts. Managed to make 10 pips with 4 or 5 trades in about 30 minutes, around 6pm GMT. 1-2 pips profit; 1-2 pips risk+spread. So there you go.

Can't decide if it's just random and the profit is actually noise. Probably.

The same problems you have with making any money by trading can be distilled to the simple question of "how to absolutely be sure of making just 1 pip."

Ask the right questions, your biggest answers fall to your feet.

I have absolutely no doubt anyone with just a little thought could make a guaranteed 1 pip profit a year, a month, a week or a day. Then why do people find it so hard?

Forex brokers do it over and over, every trade. Ask: how do they do it?

Do the same thing they do, but on a different timeframe, or framework!

TRT

There's no such thing as a risk free trade. There are trades with very minimal risk, but even arbs often hedge for a neutral position.

If you aren't comfortable taking 20 pips risk, what makes you think you'll be more comfortable taking just 1?

why not shoot for 12 pips on one trade and call it a year or 120 pips and come back in 10 years.

I like the way you think Moe

Let's take a look at the numbers, shall we.

You're from Germany so let's assume you need $5,000 USD or it's equivalent of 25 Euros per month.

In order to make 5k on one pip (we'll assume you're trading the Eur/Usd) you would have to trade 500 lots which is $50,000,000.

a single $100,000 lot of Eur = $10 per pip
500 lots = $5,000 per pip

Now I don't trade that size but I'm willing to bet that no retail brokers will let you open a single trade for that size. You'd have to go with one of the very large ECNs or probably a bank. You would have to make a single trade in order for this to work.

Again, I don't have firsthand experience with trading this size, but I'd be willing to bet that you would not get more than 10:1 leverage at this size from a bank. My understanding of banks is that your leverage would probably be closer to 5:1. But let's assume someone gives you 10:1.

So in order to put on a trade worth $50,000,000 you would need $5,000,000 for margin and that's a minimum.

Required capital = $5,000,000
Expected return per month = $5,000
Expected yearly return assuming no compounding = 12 x $5,000 = $60,000 per annum.

Now, you could take that $5,000,000 and put it into a bond fund that will net you 7-9% per year.

Expected return from bonds = $350,000 - $450,00 per annum.

Both the bonds and the forex trading would be subject to taxes in your country.

Now, forget about the impossibility of risk-free trading. It's a pipe dream, kind of like England ever winning the World Cup again.

Why would you even bother with it knowing the math? Or did you do the math?

thank you very much