Is it normal to trade at $1600 a pip? | Forex Factory

Options

Permalinks
Print Thread

Similar Threads

From 1600 USD to 10T+ USD with a portfolio of stat arb alphas 10 replies

Broker with a pip by pip trailing stop 24 replies

Pip by pip - my trading journal 21 replies

GBP/USD daily pip movement vs. EUR/USD daily pip movement 3 replies

100 pip STOP for a 100 pip Target 7 replies

Is it normal to trade at $1600 a pip?

  • #1
  • First Post: Mar 15, 2009 11:14pm Mar 15, 2009 11:14pm
Does this sound like an average amount to be trading at or is it considered low? (I honestly don't know) What is an average amount to trade a pip at?
  • #2
  • Mar 15, 2009 11:17pm Mar 15, 2009 11:17pm
depends on your account size, your strategy, and your appetite for risk. IF you can't answer these questions yourself, you shouldn't be doing $1600 a pip.
  • #3
  • Mar 15, 2009 11:54pm Mar 15, 2009 11:54pm
If he can't answer those questions himself he shouldn't be trading $.01 pips.
  • #4
  • Mar 16, 2009 4:28pm Mar 16, 2009 4:28pm
You'd need +/- $1.25 million in the account to do so,with $40k stops...
The harder I work,the luckier I get.
  • #5
  • Mar 18, 2009 10:16am Mar 18, 2009 10:16am
Depends on who is included in the equation. Every trader on earth, including institutional traders and non-speculative transactions? Average retail traders?
I don't know how to begin computing it, but in our immediate world of retail traders I would guess that $1600 per pip, or 160 standard lots, is well above average.
  • #6
  • Last Post: Mar 22, 2009 9:52am Mar 22, 2009 9:52am
it appears that all brokers have a limit on number of lots they will allow to be traded without a prior agreement in place ----- mine allows 20 lots and after that we sit down and talk, so the number of lots one needs to reach that number would not be allowed through "normal" tier 3 (and probably tier 2) channels.

and the sheer size of the account, which has already been mentioned, would preclude "most" newbs from venturing forth.

many percentage rules exist that take the value of your equity and produce a percentage of that (usually 1 - 2%) which you can trade, expecting the normal drawdowns to occur.

from much experience, may i caution you to open a demo with ONLY the amount you will be able to fund in reality --- opening a 50k account, when you will actually only have $500, provides you a cushion for margin you will never have again, at least for a long, long time !

all brokers offer high equity demos because of this simple fact --- the cushion lulls you into thinking that forex is EASY, and you immediately turn around, deposit your money, and the brokers office pool tries to decide if you will lose it in one, two or three days !

at its essence, forex is rather simple BUT that does not mean EASY --- start a demo with realistic equity, learn till you can produce AT A MINIMUM, 80% profitable trades, and then think of opening a very small account with mini lots or less.

ONE STEP AT A TIME and you can survive and not join the 95% wash out rate.

enjoy and trade well

mp
0 traders viewing now