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Attachments: Is 6 pips a day enough for you?
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Is 6 pips a day enough for you?

  • #41
  • Oct 27, 2009 12:51pm Oct 27, 2009 12:51pm
Better 6 + Pips a day Than Taking risk ,
  • #42
  • Oct 30, 2009 12:52pm Oct 30, 2009 12:52pm
Quoting DavidValera
Better 6 + Pips a day Than Taking risk ,

Well seeing as +/- 6 pips is nothing but market noise, yes it is a risk.

The guy who said he made 26 trades for 2 pips each, and put him at +73% means he is leveraging his account around 400:1 - 500:1. This is the same thing as taking a coin and placing a 500:1 bet on heads or tails. This is not trading, it's gambling. And I have a hard time believing that someone is making 2 pips with a 2 pip stop loss and trading with 500:1 leverage. People who trade with 500:1 do not have accounts large enough to only take a 2 pip stop loss because their spread is more than 2 pips on mini accounts. The spread on the account of an idiot to do such would be 4 pips which automatically means he is taking a 2:6 loss ratio (4 pips loss for spread + 2 pip loss for stop). Basically he is lieing and I can guarantee he is already broke.
  • #43
  • Oct 30, 2009 1:39pm Oct 30, 2009 1:39pm
Quoting corpralj
Well seeing as +/- 6 pips is nothing but market noise, yes it is a risk.

The guy who said he made 26 trades for 2 pips each, and put him at +73% means he is leveraging his account around 400:1 - 500:1. This is the same thing as taking a coin and placing a 500:1 bet on heads or tails. This is not trading, it's gambling. And I have a hard time believing that someone is making 2 pips with a 2 pip stop loss and trading with 500:1 leverage. People who trade with 500:1 do not have accounts large enough to only take a 2 pip stop loss because their spread...
If you're talking about Rosscub, he uses a 5 pip SL and says so in post#25. 2 pips was his average loss, not where he places his stop. He doesn't neccessarily let every trade hit his stop. You're right about it being a very tough nut to crack though.
  • #44
  • Oct 30, 2009 1:53pm Oct 30, 2009 1:53pm
Quoting corpralj
Well seeing as +/- 6 pips is nothing but market noise, yes it is a risk.

The guy who said he made 26 trades for 2 pips each, and put him at +73% means he is leveraging his account around 400:1 - 500:1. This is the same thing as taking a coin and placing a 500:1 bet on heads or tails. This is not trading, it's gambling.

The amount of margin has nothing to do with trading or gambling. It is the decisions made to determine if you are getting into a trade or not that makes the difference. It doesn't matter if you are trading 400:1 or 1:1, if you get into a trade on hope rather than a real logical decision, then it does becomes a coin toss and you are relying on luck instead of developed skill.

All margin does is allow you to get into a trade cheaper or hold a losing trade longer. Why you get into that trade is what defines you as a trader or a gambler.
  • #45
  • Oct 30, 2009 4:43pm Oct 30, 2009 4:43pm
Quoting fxRichard
I know it is for me...see two attached spreadsheets, both are the same sheet, the first assumes an account size of $50,000 to start and the other assumes an account size of $500 to start, just something to play with.
The problem I have with a 6 pips target is that it's such a large percentage of the spread, which makes trading relatively expensive.
  • #46
  • Apr 11, 2010 1:44am Apr 11, 2010 1:44am
Quoting Angler
Hi..

Just a few things...

where do you get a 5 sec chart...and for those that are profitable using the small pip theory.....I never seem to see any posting in a journal and if there is one guide me to it...I would be interested to take a look even though it is not for me....I just cant do it....and don't really want to.
oanda has a 5 second chart if you really want to get into that kind of stuff - considering the spread its probably VERY hard to be successful on a 5 second chart but I can assure you that staring at a 5 second chart WILL eventually get you used to price movement.
  • #47
  • Apr 22, 2010 1:19pm Apr 22, 2010 1:19pm
Quoting fxRichard
I use high leverage and a large percentage of my account, very rarely does the market turn on me, when it does I simply get out as soon as I detect it with only a few pip loss at max.
How do you know the market has turned on you when you are prepared to lose little more than the spread?
  • #48
  • Apr 22, 2010 7:45pm Apr 22, 2010 7:45pm
Because I know my exit before I enter. Typically my exits are 3 to 4 pips away on average minus spread. If It hits my exit the pattern did not turn out as expected...exit and wait for the next setup. If there is not a viable exit that makes sense within 6 pips away I don't take the trade as the risk is too high.
  • #49
  • Apr 23, 2010 4:21am Apr 23, 2010 4:21am
Quoting fxRichard
Because I know my exit before I enter. Typically my exits are 3 to 4 pips away on average minus spread. If It hits my exit the pattern did not turn out as expected...exit and wait for the next setup. If there is not a viable exit that makes sense within 6 pips away I don't take the trade as the risk is too high.
Richard,
One question that I have in general is the following. How has scalping been treating you?
The reason I ask like that is that after almost 3 yrs of soul-searching (and losses) in forex I think I have found my holy-grail. I am using a strategy published here in ForexFactory but with a scalping twist (i.e. take my profits quickly with small SLs). Essentially, I make 3-4 trades of 10-15 pips daily and if I am above 30 pips for the day I stop. My MM plan is to keep increasing lots maintaining a 3% risk/profit per trade. So far, I had good success but it is only 30 trading days (2 break-even days, rest in profit). Therefore, with your long time experience in scalping, I was wondering what it really feels like doing this for a long time (scalping that is), or if you have some advice in general.

Thanks,
Kostas.
  • #50
  • Apr 24, 2010 1:13am Apr 24, 2010 1:13am
Quoting kostas1
Richard,
One question that I have in general is the following. How has scalping been treating you?
The reason I ask like that is that after almost 3 yrs of soul-searching (and losses) in forex I think I have found my holy-grail. I am using a strategy published here in ForexFactory but with a scalping twist (i.e. take my profits quickly with small SLs). Essentially, I make 3-4 trades of 10-15 pips daily and if I am above 30 pips for the day I stop....

Thanks,
Kostas.
Kostas -- Wondering if that's the 3 or 4 trades per day that endroute talks about with his "Pipmaker strategy"? If so, those exits sound easy enough to program... Also, if that's the case, would like to know how you determine your exit targets as I'm thinking of coding endroute's strategy.

t.
  • #51
  • Apr 24, 2010 9:58am Apr 24, 2010 9:58am
Great Going FxRichard. Your mind is now trained to scalp. I think every skills is a training of mind.

Like have we ever seen a doctor who is afraid of blood?

I have read this whole thread and for me who is an untrained mind, it is quite difficult to scalp but for FxRichard who has been trained in doing it for past so many years.
  • #52
  • Apr 25, 2010 3:17am Apr 25, 2010 3:17am
Quoting tbuitendyk
Kostas -- Wondering if that's the 3 or 4 trades per day that endroute talks about with his "Pipmaker strategy"? If so, those exits sound easy enough to program... Also, if that's the case, would like to know how you determine your exit targets as I'm thinking of coding endroute's strategy.

t.
Tbuitendyk,
It's actually the Dance strategy which has its origins in Endroute's trading. My exit targets are size related (if the trade gives me 10-15 pips I take it). My SL are usually around 15 pips. You can study the DANCE thread if you want more info.
Kostas.

P.S. Richard I am still waiting for your response.
  • #53
  • Apr 25, 2010 6:29am Apr 25, 2010 6:29am
If I could be guaranteed of making 6 pips every day , I would be a happy trader. I would keep increasing my size of my trades every week until I was a billionaire. It wouldn't take long
  • #54
  • Apr 25, 2010 11:49am Apr 25, 2010 11:49am
Quoting kostas1
Tbuitendyk,
It's actually the Dance strategy which has its origins in Endroute's trading. My exit targets are size related (if the trade gives me 10-15 pips I take it). My SL are usually around 15 pips. You can study the DANCE thread if you want more info.
Kostas.

P.S. Richard I am still waiting for your response.
Well it has treated me very well. In reality it is the only form of trading that makes any sense to me. As I have said before setting profit targets (especially on higher timeframes) like so many do makes no sense to me, I don't doubt that it works for some but being a logical person scalping makes the most sense in my mind and fits my personality. This would in turn be my advice and what works for me:

1) Do not set a static profit target, you will only disappoint yourself, it's ok to have one that you would "like" to reach but do not make it mandatory to reach it by ANY means. I trade on a tick chart and things change with every incoming tick thus making set profit targets invalid in my mind.

2) Be patient, wait for your setup do NOT take trades just to take them, for me 1 tick can be the difference in making or breaking a pattern.

3) ALWAYS know your exit (stop loss NOT profit target) before you enter, and make sure this exit fits your risk tolerance. Once again 1 tick can be a make it or break it for the trade. I have had to many trades hit within 1 pip of my exit/stop loss and then turn to go in my favor for a win. This is the reason I have that tight exit point.

4) ALWAYS follow whatever rules you have in place. No one is perfect I still miss this one from time to time and exit too early because I have a small profit and feel uneazy about the trade, actually I did this on 2 trades late last week which in turn both ended up going as expected and I lost out on roughly 8-9 pips on each trade that I could have made in addition to the small profits I took.

Anyway just my .02 for what it's worth.
  • #55
  • Apr 25, 2010 12:04pm Apr 25, 2010 12:04pm
Quoting kostas1
Tbuitendyk,
It's actually the Dance strategy which has its origins in Endroute's trading. My exit targets are size related (if the trade gives me 10-15 pips I take it). My SL are usually around 15 pips. You can study the DANCE thread if you want more info.
Kostas.

P.S. Richard I am still waiting for your response.
Thanks Kostas, I'll check out the Dance strat when I've got a moment. And BTW, regarding how you get out... That's what I like to see -- a formulaic approach to exiting positions. This I can code easily enough.
  • #56
  • Apr 26, 2010 4:42am Apr 26, 2010 4:42am
Quoting fxRichard
Well it has treated me very well....
Richard,
Thanks for the response. Any advice from a veteran is valuable.

Kostas
  • #57
  • Apr 26, 2010 6:44am Apr 26, 2010 6:44am
Quoting fxRichard
I lost out on roughly 8-9 pips on each trade that I could have made in addition to the small profits I took.
You appear to be profiting from your strategy so not so relevant to you, but for someone new or inexperienced. When a trade is closed, its closed/finished/completed. Hence if it carries on moving in the same direction, you didn't in fact lose out on any profit as you already closed the position. Thinking about potential profits you could have made if only you had done something else is a dangerous game to get into. Its okay to review trades later and see where you made mistakes, but calculating what you could have won (like in the game shows where they show the prizes you would have got if only you had picked the other box) will get you nowhere.

Like I said, thats more a comment for someone who maybe following this thread.
  • #58
  • Apr 26, 2010 7:05am Apr 26, 2010 7:05am
Quoting ToxicChili
You appear to be profiting from your strategy so not so relevant to you, but for someone new or inexperienced....
Good point. I was merely giving an example of me not following my rules and in doing so losing out on profits I should have had by not following them. Your point is very valid though, as sitting there watching and thinking "ooh man I should have had that" will do nothing but cause frustration and lead to emotions killing your next trade thinking "ooh it might go" etc.
  • #59
  • Apr 26, 2010 9:31am Apr 26, 2010 9:31am
Quoting fxRichard
Good point. I was merely giving an example of me not following my rules and in doing so losing out on profits I should have had by not following them. Your point is very valid though, as sitting there watching and thinking "ooh man I should have had that" will do nothing but cause frustration and lead to emotions killing your next trade thinking "ooh it might go" etc.
Something many of us have done.

A good trade isn't one that is a profitable one, although many may disagree.

For example. I accidentally made a trade last week, which turned out to make 20 pips profit. If was a bad trade and came from me dropping the mouse on the floor, I got lucky. I made another trade, which hit its stopped based on my strategy, the currency then proceeded to go further against me confirming my stop was right in this instance.

Assuming my strategy is profitable (which it is at the moment), which was the better trade? The lucky punt (mistake) or the trade that got stopped out.
  • #60
  • Edited 11:02pm Sep 7, 2010 10:11pm | Edited 11:02pm
Anyone reach over the million mark?
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