Greed and how many pips is enough? | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Demo contest only - 20 pips TP and 20 pips stop - Any TF 54 replies

How many strategies are u using and how many pairs do u trade? 0 replies

How many parameters are too many? 0 replies

I lose 40 pips and win 6 to 10 pips... 17 replies

How many pairs is considered too many? 8 replies

Attachments: Greed and how many pips is enough?
Exit Attachments

Greed and how many pips is enough?

  • #1
  • First Post: May 12, 2009 8:06pm May 12, 2009 8:06pm
Hi...

First let me say that I love this forum!

The more I read the different threads about "systems" and methods of trading etc. the more I am getting confused about something.

How many pips is enough?

I read and hear people say things like...

"If you can make 20 pips a day average you will have it made".

Or even 10 pips a day. But why are some people who are trading these systems not happy with 10 or 20 pips a day? It seems like they want it to be 50 or more pips per trading session.

I even catch myself being not real happy when I close one of my trades at 20 pips profit only to see it go on to reach the 100 pip mark. Is this being greedy? If so... then how can I stop being greedy and just be happy with 20 pips a day?

BTW... I mention all of this because I just lost 570 pips of the 700 pips I profited in my first month of trading a live micro account. All 570 pips spread over 4 trades. I know I got greedy.... and I hope I have learned my lesson. Back to the drawing board!

For those experienced traders.... how many pips is enough for you?
  • #2
  • May 12, 2009 8:27pm May 12, 2009 8:27pm
Amount of pips means nothing.

Everything depends on your R:R and Hit-rate.

You shouldnt realy be asking questions like this after being a member for 2 years.
Living the adventure in my head.
  • #3
  • May 12, 2009 8:42pm May 12, 2009 8:42pm
Quoting Leonlorenzo
Amount of pips means nothing.

Everything depends on your R:R and Hit-rate.

You shouldnt realy be asking questions like this after being a member for 2 years.
Maybe so... but I was just a bit curious. Also... a member of FF for two years yes. But not actively trading Forex (demo or real) since the end of 2007. I got frustrated and didn't even look at a chart for all of 2008. So I really am still a newbie.
  • #4
  • May 12, 2009 8:46pm May 12, 2009 8:46pm
Quoting adsanders
I got frustrated and didn't even look at a chart for all of 2008. So I really am still a newbie.
I know the feeling.

If your going to acheive anything here then you have many periods of frustration to look forward to.

Goodluck

Leon
Living the adventure in my head.
  • #5
  • May 12, 2009 9:01pm May 12, 2009 9:01pm
Quoting adsanders
Hi...

First let me say that I love this forum!

The more I read the different threads about "systems" and methods of trading etc. the more I am getting confused about something.

How many pips is enough?

I read and hear people say things like...

"If you can make 20 pips a day average you will have it made".

Or even 10 pips a day. But why are some people who are trading these systems not happy with 10 or 20 pips a day? It seems like they want it to be 50 or more pips per trading session.

I even catch myself being not real happy...
Hi,

Twenty pips to some means a lot more than it does to others. I suppose it all comes down to funding. At the end of the day if those 20 pips are worth a 1000 bucks then taking them off the table becomes a hell of a lot easier than if your messing around with a pennies account.
  • #6
  • May 12, 2009 9:42pm May 12, 2009 9:42pm
The answer seems to be more money, not pips, made than lost.
Fewer pips, a stop is difficult (fast fingers), depending on the broker's source of income from you (spread: against; commission: for);
more pips, margin is difficult because it's a tougher call and also depends on, in general, the session's activity (8pm-2am EST narrow bars / channels, 2-8 wide, news 2-8 very wide).
A starter: bucketshop, an average method, and Asian session, 10 watched stop, 20 limit. Could be anything.
  • #7
  • May 12, 2009 9:55pm May 12, 2009 9:55pm
Quoting Siam
Hi,

Twenty pips to some means a lot more than it does to others. I suppose it all comes down to funding. At the end of the day if those 20 pips are worth a 1000 bucks then taking them off the table becomes a hell of a lot easier than if your messing around with a pennies account.
I totally agree.

Since I am trading only a micro account at 10 cents a pip it is pretty easy for me to open 4 trades at a time. Where as if each pip were worth $10 USD I would never do such a thing. So maybe that is partly why I get greedy. Losing $57 is a whole different story than losing $5700!

Thanks for everyones input.
  • #8
  • May 12, 2009 10:17pm May 12, 2009 10:17pm
Hi,
don't the pip or take profit value depend on the system you are using? I thought the strategy you use tells you where to set the take profit value? Or should I be exiting trades at a set pip value?

I've also seen profitable trades turn to losses because I stayed in the trade. I thought it was just me not following the system...



Alex
  • #9
  • May 13, 2009 4:56am May 13, 2009 4:56am
as i know all the system good on identify entry point, but for exit is different story. you have to decrease your greed level alex..
  • #10
  • May 14, 2009 9:42am May 14, 2009 9:42am
I think it's never enough,

____________________

Gartley Patterns

.
  • #11
  • May 16, 2009 7:44pm May 16, 2009 7:44pm
Quoting adsanders
"If you can make 20 pips a day average you will have it made".
Yup.
Quoting adsanders
I even catch myself being not real happy when I close one of my trades at 20 pips profit only to see it go on to reach the 100 pip mark. Is this being greedy?
Yes.
Quoting adsanders
If so... then how can I stop being greedy and just be happy with 20 pips a day?
Do it for a couple of weeks in a row...
On the path to Enrichment.
  • #12
  • May 17, 2009 12:17am May 17, 2009 12:17am
Quoting adsanders
Hi...

First let me say that I love this forum!

The more I read the different threads about "systems" and methods of trading etc. the more I am getting confused about something.

How many pips is enough?

I read and hear people say things like...

"If you can make 20 pips a day average you will have it made".

Or even 10 pips a day. But why are some people who are trading these systems not happy with 10 or 20 pips a day? It seems like they want it to be 50 or more pips per trading session.

I even catch myself being not real happy...
This should be to the discretion of the individual, I mean you have some pairs like GBP/JPY which you can swing trade for nearly 200 pips a day, just b/c your staying in a trade doesn't make you greedy. I always stay in my trade b/c if you know the mechanics of the market, your going to get pullback and seesaws as the market begins to gain momentum and then it breaks out in either direction,hopefully in the direction you decided on.
{Promotion Removed}
  • #13
  • May 18, 2009 8:25pm May 18, 2009 8:25pm
Quoting Jurrasic
Yup.

Yes.

Do it for a couple of weeks in a row...

Good points!
  • #14
  • May 18, 2009 8:52pm May 18, 2009 8:52pm
"Plan your trade and trade your plan".

This phrase will encompass every answer you are looking for.

Best eg I can give you is Haroldfx. His tp is the same as his sl. ALWAYS. He trades a set % risk per trade. So, eg if he is risking 3% on the trade, he is going to make 3% on the trade. No matter if the trade goes another 100pips from where he exited. That is his plan, and he sticks to it. Is it the best plan? For him, it is.

So, you have to have a plan. And the plan is based on the strategy/method of trading you will be doing.

Many of the successful traders here have said that the best thing you can do once a trade is placed is switch the computer away, as you will have placed your sl and tp.

It all depends on your style of trading.
BTW, I am a scalper, so I do not walk away from a trade. http://www.forexfactory.com/images/icons/icon12.gif

Cheers,
K.
  • #15
  • May 19, 2009 12:49pm May 19, 2009 12:49pm
"I even catch myself being not real happy when I close one of my trades at 20 pips profit only to see it go on to reach the 100 pip mark. Is this being greedy? If so... then how can I stop being greedy and just be happy with 20 pips a day?

BTW... I mention all of this because I just lost 570 pips of the 700 pips I profited in my first month of trading a live micro account. All 570 pips spread over 4 trades. I know I got greedy.... and I hope I have learned my lesson. Back to the drawing board!"


Back from holidays.....

Losing 570 pips over 4 trades is not greed,it's a lack of discipline combined with a fear of admitting to yourself you were in the wrong-and hoping the market would turn around.And perhaps a few other things you won't like to hear.

Simple solution...lose 2-3 % of total account $$ value on any given trade,then liquidate.
If U had done that simple thing you'd have lost about 7% of your account.

And is it greed to take profit at 300 pips rather than just 20?

Another simple solution-instead of one 100k lot,trade 10-15 minis.
Take profit with 2 or 3 or 4 lots at 20 pips and let the remainders run.
Cash out whenever you see a hiccup.
If they don't run,then close out with BE or minor profit.

And if you see the trend continuing..why sit there and watch???
Dont worry about the spread-if you're in a good trade the market's paying for it

It's not so much the money you make,but rather the money you don't lose.

Off for another week.
The harder I work,the luckier I get.
  • #16
  • May 19, 2009 8:32pm May 19, 2009 8:32pm
Quoting Skippy
"I even catch myself being not real happy when I close one of my trades at 20 pips profit only to see it go on to reach the 100 pip mark. Is this being greedy? If so... then how can I stop being greedy and just be happy with 20 pips a day?

BTW... I mention all of this because I just lost 570 pips of the 700 pips I profited in my first month of trading a live micro account. All 570 pips spread over 4 trades. I know I got greedy.... and I hope I have learned my lesson. Back to the drawing board!"


Back from holidays.....

Losing 570 pips...
Thanks! More good advice!
  • #17
  • May 20, 2009 1:37am May 20, 2009 1:37am
Quoting adsanders
Hi...

First let me say that I love this forum!

The more I read the different threads about "systems" and methods of trading etc. the more I am getting confused about something.

How many pips is enough?

I read and hear people say things like...

"If you can make 20 pips a day average you will have it made".

Or even 10 pips a day. But why are some people who are trading these systems not happy with 10 or 20 pips a day? It seems like they want it to be 50 or more pips per trading session.

I even catch myself being not real happy...
I too once wondered the same thing. Then I put this handy little spreadsheet together to help me visualize my results using different combinations of daily pip targets combined with risk percentages, etc.. It will help you figure out exactly how many pips you need to hit every day in order to reach your profit goals.

What you need: Open Office, which is a 100% free office suite OR Microsoft Office which can be obtained on a trail.

And this spreadsheet file:
Attached File(s)
File Type: zip Trade Planner.zip   23 KB | 496 downloads
(both Open Office and MS Office Versions are in the ZIP file, I recommend the Open Office version)

The Columns should be fairly self explanatory, the only fields you should need to adjust are the WHITE fields, which are your current balance, what percent of that balance to trade, and how many pips you are trying to get daily. You can also adjust the acceptable stoploss field which you calculate losses if it is hit.
Attached Image (click to enlarge)
Click to Enlarge Name: Spreadsheet.PNG Size: 208 KB
  • #18
  • May 20, 2009 2:10am May 20, 2009 2:10am
I remember when i wasn't happy with just 43 pips, so i waited until it reach 50pips,
but it never reach that TP and keeps dropping and eventually hit SL LOL

My greeds ^_^

Nowadays i don't mind even if i only gets 1pips net profits
but i'll make another trades (on another pairs if necessary) if i haven't made atleast 100pips for that day
  • #19
  • May 20, 2009 4:11am May 20, 2009 4:11am
Quoting adsanders

How many pips is enough?
...

For those experienced traders.... how many pips is enough for you?
First off, I don't care how long you have been trading, etc. etc. You are asking a very good question. I saw a couple of slams against you and think it is uncalled for, but hey, that is me and my opinion.

Look, I have been trading for 5 years now and you are heading down the right road with that question. First off you are one of the very few I have heard who is focusing on PIPS not dollars (or Pounds, or Yen, or, well you get the idea now ). This my friend is the road to real riches, not the dollar amount. Focusing on the dollar amount is absurd in my opinion because it depends on how many lots you are trading; if they are mini, micro or full lots; risk vs. reward; etc.

Focusing on PIPS is going to get you to the road of consistency which is the most important thing in this business. I know a guy who has been a professional trader for the last 20 some years (long before the spot market) and even though he is a big time trader, you know what? He has a limit of 75 pips a day. That's it. Doesn't care who is blabbing what; what report is coming out; what trade just set up; etc. That's it. 75 a day no matter what. Guess how many PIPs he makes? Extremely consistently. Sure he has his loosers occaisionally but much less than most people.

Here is the thing. I got into a period of trouble. Mental stuff. Started to become very inconsistent. Long story. I went back to basics earning small PIPs a day. 5 PIPs at first. 5 pips made and I closed the trade and then watched and mentally traded for the rest of the day. I did this for a couple of weeks. Consistently made 5 PIPs a day. Every single day! It's like a pro baseball player who is having mental troubles. Guess what they practice on? Bunting or just hitting the ball. Not worrying about a home run; double, etc. Just hitting the ball for a base hit. That's it. Then they move on. Anyway.

Then I moved up to 10. Struggled a little for the first couple of days (I created a subconscious habit of 5 a day) but still made over 5 PIPs. Then started to consistently make 10 a day. Then 15, then 20, then more. Etc. My goal is 300 PIPs a week with the Cable. With my system I can easily do this, but you see, the system offers more than this, however making it is a different matter.

So the long and short. What does your system consistently offer? I know a guy who can make a program for you where you can put in the daily high and low and get a daily average. I use one and it lets you know what is ultimately offered and then you can figure out what is a good number and one you are comfortable with. Then start to move towards that goal. He is on this board so if you want his info let me know and I will make sure he still does this and then put you in contact.

20 PIPS a day will, over time, make you a ton of money if you are patient for a while and let your money build.

Consistency is the most important thing in this business no matter what anyone else says.

Best wishes to you. I hope this helps.
  • #20
  • May 20, 2009 10:28am May 20, 2009 10:28am
hi, i could'nt just leave without letting you know i was here.at this point in my trading career, consistentcy is what iam trying to achieve. i had just decided on the 20pips plan before i saw this thread.i think getting 20pips a day consistently and increasing the lot size gradually would be the fastest way of building an account.
i have blown several.i have always thought 20pips a day was too small as i could easily make 200......then lose 400!
now iam working on a plan that will give me just 20 pips.i trade a mini, so 20pips over time should be a stress free investment. but.....
0 traders viewing now