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Greed and how many pips is enough?

  • #21
  • Edited May 21, 2009 3:10am May 20, 2009 11:12am | Edited May 21, 2009 3:10am
Quoting abasiakara
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...
Well from my perspective,
your problem is not the 20pips a day, but its your money management
If you blown your account often its mean you're using too much margin
  • #22
  • May 20, 2009 1:56pm May 20, 2009 1:56pm
Quoting abasiakara
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...
You have the right idea. If you took a look at the spreadsheet I posted earlier you could see that if you shot for just 20 pips a day on a $100 dollar account using only 10% margin that in 1 year of trading you would have $28,000.

Thats the power of consistent PiP gathering combined with IMO proper money management and lot sizing.

PS: Dont let people fool you into thinking they "average" 100 pips a day or are some amazing trading gods. If they really were as good as they make themselves out to be, they would be buying islands. For instance, lets assume I had that same $100 account and I consistently made 100 pips a day risking 10%, by the end of the year I would have $62,000,000.00. I would probably never trade again. There are a lot of people out there who talk a big game and have nothing to show for it, dont let thier talk discourage you.
  • #23
  • Dec 9, 2017 3:58am Dec 9, 2017 3:58am
This ought to be to the attentiveness of the individual, I mean you have a few sets like GBP/JPY which you can swing exchange for about 200 pips per day, just b/c you're remaining in an exchange doesn't make you eager. I generally remain in my exchange b/c in the event that you know the mechanics of the market, you will get pullback and teeter-totters as the market picks up energy and after that it softens out up either direction, hopefully toward the path you chose.
  • #24
  • Dec 9, 2017 9:09pm Dec 9, 2017 9:09pm
How many pips is enough is dependent on your goals and risk management. For example: using a max risk of 2% of capital per trade, a net gain of 40 pips per week would result in a 6% per month gain. Assuming you do not withdraw any capital and adjust your lot size to compound your gains, you could double your money every year.

But here's what's more important to understand:
You shouldn't use how many pips you want to guide your entries or exits. You should strive to take what the market gives. The market doesn't care if you want 40 pips. It's gonna do what it's gonna do. Ten pips profit is a good trade if the market only moved ten pips. Bottom line is enter and exit your trades based on price and or whatever system / analysis you find that works. Once you are consistent with your entries and are winning more than losing, you can raise or lower your risk per trade to maximise profit.
  • #25
  • Dec 11, 2017 9:58am Dec 11, 2017 9:58am
Pips alone mean nothing. What also matters is the size of your account and the lots you're trading. 10 pips give very different results when you are trading 1 lot and 0.1 lot.
  • #26
  • Dec 12, 2017 4:02am Dec 12, 2017 4:02am
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 when I close one of...
When I first started trading. I'm looking forward to 10 pips. Then as my confidence level rises I'm looking for 25pips and then when I crash. I'm just lucky if I get 5 pips.

10 years forward. I now understand the ratio of high return low risk. Buy low, sell high. You don't make money by being right. You make money by being profitable.

I once sold a house that yearns me 200% but the downside is I have to buy higher. My greatest regret is buying another house.

I think mediation and consumerism is the biggest liabilities when it comes to wanting more. The lack of inner peace couple with the void to fill fuel my need to make more, buy more.

Capitalism is great. It fueled the time line from poverty to getting by to freedom. But it also the chain of most people depression.

Anyway. If you want 100 or even 1000 pips a week. You can't trade from anything below 4hr. Daily and weekly can offer much more.

I'm trading an impossible task by betting on consolidation and better return to give me the edge I yearn for to have a never losing day.
You're going to pay a price for every bloody thing you do and don't do
  • #27
  • Mar 10, 2018 4:08am Mar 10, 2018 4:08am
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 when I close one of...
I really appreciate your contribution! Its true traders are making their money here according to their strength! So, dont force yourself to earn more without learning.
  • #28
  • Mar 10, 2018 6:31am Mar 10, 2018 6:31am
Quoting adsanders
... how many pips is enough for you?
Hi adsanders,
In one sense that is a bit like asking, how long is a piece of string? It's nonsensical as a standalone statistic, it only has meaning in the overall context of how your method works, what your financial aims are and the size of your account.

In another way, though, it's quite a revealing question and all I can do is tell you what it is for me. I daytrade with a standard 10pt stop and a 10pt initial profit target. I size the positions to risk 1% of my account per trade at the stop and I look to make 1+ net winners each week, i.e. just 10+pts per week. That's enough to net me 50%+ return on opening capital each year and in cash terms my account is large enough for that to make a serious contribution to my income needs.

Yours and everyone else's personal scenario will be different but you see that the answer to the question depends entirely on the wider context. Hope that helps.
  • #29
  • Mar 10, 2018 9:14am Mar 10, 2018 9:14am
What one needs is not greed or a set amount of pips but good discipline, knowledge, experience, a working strategy and consistent profits.
  • #30
  • Mar 11, 2018 11:13am Mar 11, 2018 11:13am
Quoting mlawson71
What one needs is not greed or a set amount of pips but good discipline, knowledge, experience, a working strategy and consistent profits.
That is exactly correct. I aim for 10 _40 pips but that is because my system is based on accuracy. With that said, i rather risk 35% of my account to male the same amount and hit that 9 out of 10
  • #31
  • Mar 11, 2018 1:08pm Mar 11, 2018 1:08pm
Actually everyone's expectation is different. Understanding, knowledge and strategy are also different. Yes 10 to 20 pips per day can be good enough if you can consistently make it. And when your target is 10 pips daily you may be need to increase your lot size. Hence risk comes. You have to be skilled and disciplined.
  • #32
  • Mar 20, 2018 11:50am Mar 20, 2018 11:50am
Quoting JonathanHob
Actually everyone's expectation is different. Understanding, knowledge and strategy are also different. Yes 10 to 20 pips per day can be good enough if you can consistently make it. And when your target is 10 pips daily you may be need to increase your lot size. Hence risk comes. You have to be skilled and disciplined.
Forex trading is all about calculated risk. Some people overdo it and lose money, others don't take enough risk and as a consequence earn very little.
  • #33
  • Mar 20, 2018 2:23pm Mar 20, 2018 2:23pm
Quoting adsanders
For those experienced traders.... how many pips is enough for you?
Any trade that closes profitably is a good trade. One that closes at a loss is a bad trade.

In the world of the stock market there's a saying, "cut your losers and let your winners ride."

That means if you have a profitable trade going, don't close it at some arbitrarily defined "enough" number. Instead let it go and keep making your profit. Just throw on a trailing stop and let it run.

Part of the reason for this is that the inevitable losing trades will eat into the profit of your winning trades. So the idea becomes to make as much as you can from winning trades while ideally keeping your losing trades as small as possible.

This isn't being "greedy" it's just trading smart.
Woohiye is a Lakota Sioux word that means success, or overcoming obstacles
  • #34
  • May 19, 2018 7:23am May 19, 2018 7:23am
Quoting JonathanHob
Actually everyone's expectation is different. Understanding, knowledge and strategy are also different. Yes 10 to 20 pips per day can be good enough if you can consistently make it. And when your target is 10 pips daily you may be need to increase your lot size. Hence risk comes. You have to be skilled and disciplined.
10 to 20 pips with consistency is a big deal especially for the beginners , only discipline can bring that result but to be experienced and discipline trader is related with long term approach , so patience is needed first of all.
  • #35
  • May 25, 2018 5:45am May 25, 2018 5:45am
Generally we cant maintain our discipline when trading due to emotions, and emotions we can control by proper practicing in demo. So, Practice more and more and be disciplined.
  • #36
  • Sep 4, 2018 4:22am Sep 4, 2018 4:22am
Just LOL. practice in a demo account cant be solution to control emotions when trading. we are not robot actually , so sometimes emotions works but if try to main discipline there is a chance to control this common human habit.
  • #37
  • Edited 7:09am Sep 9, 2018 6:49am | Edited 7:09am
trading plan, that is the answer to how many pips should one book profit at.

if your trading plan does not define this, then it is time to go back to the drawing board.

for eg:
- exit at ema crossover
- exit at breach of middle bollinger band
- resistance level
- etc etc

for my trend trades i use trailing stop loss a few pips below the slower moving average and keep modifying it until it is triggered which is my exit

if you wish to define yourself to check if you are doing well or not use these parameters instead - 10% of move / average, 20% of move / good, 30% or more of move/ excellent.

i assume you are not a scalper as in that case you would already have strict pre-defined exits.
i use 1:1 on my scalps and where the price goes after my exit is none of my concern unless i wish to re-enter into a new trade thereafter

a good trade is not always a profitable trade but one in which your trade plan is strictly adhered to. yes, most end up in profits i admit. but i had many good trades in losses too.
the market does not follow rules at all times but a trader cannot afford that luxury and it is entirely upto you to follow the trade plan/rule set up.

if you are not following a trade plan - to me that is greed.

they say little knowledge is dangerous - likewise, a little slip up in following a trade plan is disastrous.
“Trade the market in front of you, not the one you want!” – Scott Red
  • #38
  • Sep 18, 2018 3:34am Sep 18, 2018 3:34am
How many pips you can earn in a day , it completely depends on your strategy with money management. so, improve your trading strategy by proper practicing and ensure how to manage money when trading.
  • #39
  • Aug 31, 2020 11:24am Aug 31, 2020 11:24am
I didnt set any pips target per day. If I do that, I think greed or stress will affect me end of the day. As long as I have time and I find a great opportunity like I am 90% sure of a trade then I jump into the market. Otherwise I am not.
  • #40
  • Aug 31, 2020 8:25pm Aug 31, 2020 8:25pm
It is very important to make decisions in every field of trading. You need to be happy with what you earn from trading every day. And when you are unhappy, you are indulging in greed. And if you indulge in greed, you will start overtrading which is very harmful to your trading future. According to the analysis, you should be happy with as many pips as you can profit.
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