"Only" 16pips / 27pips a day... | Forex Factory

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"Only" 16pips / 27pips a day...

  • #1
  • First Post: Dec 7, 2009 11:45pm Dec 7, 2009 11:45pm
That's how much you need to make a day to make 50% / 100% per annum, compounded on 255 trading days per year, respectively. Trading is one of those odd ventures that seems so easy to a beginner, yet is fraught with perils.

16pips / 27pips a day doesn't sound like very much at all, and yet, not many of us can do even that many pips consistently*.

Why do you think this is so?

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*If you could do this on an entire portfolio and not just on individual trades here and there, I think there are many HFs and IBs who would hire you.
  • #2
  • Dec 7, 2009 11:51pm Dec 7, 2009 11:51pm
Quoting kfmfe04
that's how much you need to make a day to make 50% / 100% per annum, compounded on 255 trading days per year, respectively....
emotions poor discipline no patience
  • #3
  • Dec 8, 2009 12:09am Dec 8, 2009 12:09am
For some traders there are far less than 255 trading days, and for others there are 365 (well, almost).

Quote
16pips / 27pips a day doesn't sound like very much at all, and yet, not many of us can do even that many pips consistently*.

Pips alone don't mean much.

Quote
Why do you think this is so?

This is really just the common "why do so many traders lose?". There are many, many reasons, and that also answers why most people lose. To sum up those reasons, people need only look in their mirror, or at their trading strategy. There will of course be a small number of losers who just experienced extremely unfavourable variance, i.e. they were unlucky.
  • #4
  • Dec 8, 2009 12:28am Dec 8, 2009 12:28am
Quoting Mr J
Pips alone don't mean much.
I think this is very important observation. Pips alone tells me nothing about the risk taken, in terms of drawdowns or portfolio volatility.

Analogously, I often read about 90%+ winners.

Well, it's easy to do that if I'm trading a Martingale-style system... ...we just don't know when the time-bomb will go off. The devil is in the details.

But it just blows my mind that on one hand, we see numerous posts for hundreds or thousands of pips and yet, all we need is 16pips daily consistently to make a great return.

There seems to be a disconnect, but I think your observation is useful in explaining what is going on - much of the picture could be missing.
  • #5
  • Dec 8, 2009 1:25am Dec 8, 2009 1:25am
Quoting >Apocalypto<
emotions poor discipline no patience
yes, for me to see new and some experienced traders, this is 'always' the number one reason.
  • #6
  • Dec 8, 2009 1:59am Dec 8, 2009 1:59am
1 pip per day is enough. Don't know how you come up with that crude calculation?
  • #7
  • Dec 8, 2009 2:37am Dec 8, 2009 2:37am
Quoting Xaron
1 pip per day is enough. Don't know how you come up with that crude calculation?
You know how it is, everyone has a magic figure that has come out of a magic calculation based on a magical theory that will magically turn that small account into billions of dollars. Kinda makes me wonder why I didnt study to become a magician, could have made a load of money just for tricks

BTW, love your journal. You dont need it but I gave you a vouch anyway

Razor
  • #8
  • Last Post: Dec 8, 2009 2:46am Dec 8, 2009 2:46am
Quoting Razor_trader
You know how it is, everyone has a magic figure that has come out of a magic calculation based on a magical theory that will magically turn that small account into billions of dollars. Kinda makes me wonder why I didnt study to become a magician, could have made a load of money just for tricks


Quote
BTW, love your journal. You dont need it but I gave you a vouch anyway

Razor

Thanks! Very kind of you!
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