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10 pips a day can make you rich quickly

  • #101
  • Nov 16, 2013 4:14pm Nov 16, 2013 4:14pm
I don't see how I can use any kind of money management system to support this type of trading to be honest.

The real success of Forex I have discovered is account size. Let's say you need $2000 per month to support your lifestyle. To do that with a $10K account you need to make 20% profit per month. To do that with a $100K account you only need to make a 2% return per month. Who has the higher probability of success?
  • #102
  • Nov 16, 2013 4:22pm Nov 16, 2013 4:22pm
Quoting Lib3rty
...
Yes that is the correct statement. Just imagine: you can make 20% as easily with a 10k account as you can make 2% with a 100k account if you just use the same lot size. Meaning that if you have a 10% draw down on the big account your small account wiped out. And it doesn't look better the smaller your starting balance is.
I don't know why so many starters want to start with the hardest possible way to trade. Guys scalping for 10pips is exhausting and unprofitable. The bigger timeframes look exactly the same as the smaller timeframes. If they would remove the labels you would not be able to tell which one is which. If you are able to catch a trade on a smaller timeframe you can also do the same on the next bigger one meaning you got more time to think about the entry and exit and you pay less spread compared to your profit/loss.
  • #103
  • Nov 16, 2013 10:53pm Nov 16, 2013 10:53pm
Quoting Kilian19
{quote}.... Guys scalping for 10pips is exhausting and unprofitable. The bigger timeframes look exactly the same as the smaller timeframes. If they would remove the labels you would not be able to tell which one is which. If you are able to catch a trade on a smaller timeframe you can also do the same on the next bigger one meaning you got more time to think about the entry and exit and you pay less spread compared to your profit/loss.
It's not exhausting if it is automated.

If it's profitable, well, I'm yet to see this without having some good order book information.
  • #104
  • Nov 17, 2013 8:25pm Nov 17, 2013 8:25pm
Quoting Lib3rty
I don't see how I can use any kind of money management system to support this type of trading to be honest. The real success of Forex I have discovered is account size. Let's say you need $2000 per month to support your lifestyle. To do that with a $10K account you need to make 20% profit per month. To do that with a $100K account you only need to make a 2% return per month. Who has the higher probability of success?

Definitely someone with the 100K will achieve that target easier...but the deal is human being are greedy and a reasonable trader will not invest 100K so as to get 24K annually...they definitely will aim higher and may as well end up risking as much as the 10K account holder.
  • #105
  • Nov 17, 2013 10:04pm Nov 17, 2013 10:04pm
Quoting Danny Maina
{quote} Definitely someone with the 100K will achieve that target easier...but the deal is human being are greedy and a reasonable trader will not invest 100K so as to get 24K annually...they definitely will aim higher and may as well end up risking as much as the 10K account holder.
Did you mean a 10K account holder risk more than a 100K account holder?
DON'T TRADE THE DIRECTION, TRADE THE MOVE
  • #106
  • Nov 17, 2013 11:29pm Nov 17, 2013 11:29pm
Quoting Pipomagic
{quote} Did you mean a 10K account holder risk more than a 100K account holder?

Definitely not....the fact that someone holds a 100K account means that he is already risked his capital by choosing trading as their preferred investments. My point is you definitely are gonna strive to earn 2K from a 100K account, you are gonna aim higher and the risk in % is gonna be as high as the guy with the 10K account.
  • #107
  • Nov 18, 2013 11:02pm Nov 18, 2013 11:02pm
Quoting ProdiG
i was bored the other day and was curious that if someone can get rich earning 10 pips at a time. i usually trade the asian session so i don't really get the 100 pip moves. i was curious if i started $1000 how much would i have using a strategy that could get me 10 pips a day. i was shocked when i finished this spreadsheet. im not sure how to attach files and also not sure if i can attach an excel file but let me know if you want to see it.
You have actually brought a very good point. Before reading your post I started a new threat on the difference between volume and Pips

What is more important PIPS or Volume?



Most people focuses on the amount of PIPS they make during their trading. Actually this is the attitude of most retail traders and it is a great marketing tool for companies selling course and such.



“Get excited we can show you how to make 200 pips a day”



When you look at the financial news you will also notice that they talk about the big move of a stock, futures and currencies.

Is this really the secret to FOREX success?


When you trade at the professional level, a professional trader will disregard the amount of PIPS to a large extent. What is important to a professional trader is that he or she makes a little on every trade.


So how does a professional trader make money?


Instead of focusing on the amount of PIPS he focuses on the volume of the trade. Most traders have it backward. They will focus on the amount of PIPS but can never increase the trading volume. Why? Because in order to be successful you must be consistent. So if one day you make 100 pips you are very happy but are you 100% confident that you can do it the next day? Usually the answer is no. So you do not increase your trading size for that simple reason.



If you are able to consistently make 10 pips a day then you are on your way to be successful

Let’s take an example:


Let’s say you learn how to make 10 pips a day therefore you can make 200 pips a month.

200 pips a month on a standard position is $2,000.00 USD. This is not so bad is it?



How about you are able to increase the position size to 4 standards?


Your income becomes $8,000.00 USD that becomes very interesting isn’t it.? And it is the same 10 pips a day…..


So how can you increase your lot size? Not so easy because it requires one element which is paramount to your trading career. That element is :


CONFIDENCE


When you know for sure that no matter what, no matter how, you will make 10 pips a day, 200 pips a month then you are confident in trading larger. If you trade larger you actually reduce your risk because you trade less.


In the group of traders I belong to we strive and help each other to achieve that level of confidence so we can trade larger. This is the key to success: Increase your confidence by trading less but large.


Size does matter especially in FOREX J.



Happy Trading
  • #108
  • Nov 18, 2013 11:41pm Nov 18, 2013 11:41pm
Quoting Danny Maina
{quote} Definitely not....the fact that someone holds a 100K account means that he is already risked his capital by choosing trading as their preferred investments. My point is you definitely are gonna strive to earn 2K from a 100K account, you are gonna aim higher and the risk in % is gonna be as high as the guy with the 10K account.

what would you recommend for someone with 100K to invest in?
DON'T TRADE THE DIRECTION, TRADE THE MOVE
  • #109
  • Nov 19, 2013 12:41pm Nov 19, 2013 12:41pm
Quoting Pipomagic
{quote} what would you recommend for someone with 100K to invest in?
No recommendation sir, just trade according to your account size
  • #110
  • Nov 25, 2013 8:09pm Nov 25, 2013 8:09pm
Quoting Pipomagic
{quote} what would you recommend for someone with 100K to invest in?
I think that the question is not the account size as much as your skill level. If you have 100k to trade with then you can trade larger, actually you could take position size of 1mil. People say that you need 10k to trade 100k so 100k can let you trade 1 mil.
But can you trade with confidence position of 1mil? If you can then it is great, 5 pip a day would give you $500 a day which is 10k per month and 120k per year.

So if you have 100k then you should learn how to trade 5 pips a day and you will make a 6 figure income. As much as it is easy to say, it is not easy to do. So I would forget about account size and focus on developing your confidence in trading for small but consistent profit.
  • #111
  • Nov 26, 2013 4:26am Nov 26, 2013 4:26am
I don't think you can become rich quickly by just making 10 pips a day, but you can make a steady income by making just 10 pips a day provided that you are trading large lot sizes. Most newbie traders get too excited when they start making money in forex and then start overtrading. Which usually leads to blowing up your trading account.
  • #112
  • Dec 1, 2013 12:34pm Dec 1, 2013 12:34pm
have 10 pip day is hard. you must use stoploss and stoploss is hit many times. win every day is very difficult. meabe add stoploss in be and waiting
  • #113
  • Dec 6, 2013 4:12pm Dec 6, 2013 4:12pm

Hi all, I found this thread very interesting. I believe that it is possible for everyone with small trading experience to achieve 10pips a day target (no more no less). I been trading shares, forex and indexes since last few years and have tried/used several strategies so far including expensive courses and always used to chase long targets of several hundred pips and never thought that how easy it could be to obtain the same profit levels by targeting only 10pips a day. One of my friend Prof.S is constantly hunting 10-20pip a day since last few years and enjoying a stress free decent living. Only think i was not impressed about his way of trading was to sit in front of PC for long hours. But after reading all above posts I'm convinced that it is well worth it as it makes perfect sense.

If any member is using any different strategy to achieve 10pips a day and getting the results successfully then I will be grateful if he/she can share their strategies with us on this forum.

Kind regards

  • #114
  • Dec 7, 2013 5:00am Dec 7, 2013 5:00am
In theory 10 pips a day can make you rich.

In practice, it is practically impossible in terms of basic money management rules (The key to success).

Basic money management guidelines say that you should aim for a minimum 3:1 profit to loss ratio on every trade.
Therefore in your 10 pip take profit strategy, you need to use a 3 pip stop loss. With spread, I think there is no strategy in the world that can handle 3 pip stop losses. If you place 20 pip stop loss, then your money management strategy is bad. You will take 1 step forward, 2 steps backwards and never get rich.
  • #115
  • Dec 7, 2013 10:05am Dec 7, 2013 10:05am
I believe 10-20 pips a day is a good trading DAY....where I have messed up in the past and losing all,was I over traded. Not good. Just keep it simple and stay the course is Better in the long term
  • #116
  • Dec 9, 2013 4:38pm Dec 9, 2013 4:38pm
I can't say I really understand this. Here we are, working diligently to get the market to move in our favour for each trade we put on...

...and then we decided to jump ship the minute the train is barely out of the station! (As with the train analogy, I'm not sure how you're going to get anywhere doing that.)

Now, if you have a working EA, or are scalping, then essentially that's what you're doing, repeatedly. But if you're going to limit your DAILY success to such an extremely small result. Well, I'm not sure if it's really worth it.

Why not just let every trade have a -10 stop and +11 limit? Will this suddenly throw the whole concept into disarray? You've just increased your profit margin potentially by 10%, which is a reasonable amount, but then again - also your risk, on those trades that only just made it to 10 and then fell back and got stopped out. Hmm.

Conceptually, you can take this to extremes by saying if you only took +1 pip per day, you could achieve it as well. You'd just have to have a fairly chunky account and trade size to go with it, in order to get any decent returns. {shrug}

For me, I roughly calculate it backwards. Trade and figure out what you seem to make (pips per day/week). Then decide what trade size you can put up vs your capital and then let it go.

Don't limit the upside of your trades - the profitable trades are elusive enough as it is, without you only taking home one sleeve of the t-shirt...
  • #117
  • Dec 22, 2013 10:35am Dec 22, 2013 10:35am
You are right, ignoring Spreads and commissions if you just did a TP 11 and SL 10 you should come out ahead. Now assume you have a small edge in your trading. Lets say Moving average. You only buy when above a MA or sell when below. Then you can move the TP out to 13 and keep the SL at 10 (or use TP 23 and SL 20)

This is what I am focusing on in the new year.
  • #118
  • Dec 23, 2013 2:33am Dec 23, 2013 2:33am
Quote
10 pips a day can make you rich quickly

It depends on the price from the 1 pips)
  • #119
  • Dec 23, 2013 4:45am Dec 23, 2013 4:45am
Quoting carefcbr
have 10 pip day is hard. you must use stoploss and stoploss is hit many times. win every day is very difficult. meabe add stoploss in be and waiting
Forget about the daily target. Consider it as a weekly target. So 50 pips per week is 10 pips a day.
  • #120
  • Dec 28, 2013 2:36am Dec 28, 2013 2:36am
im new to forex trading. a little bit of binary options and trying afew strategys.

after reading this why do you need a 10k account, i dout you need this much. im not to sure how to buy or how much. its proberly not as simple as i believe it to be. but my basic knowledge is sell or put at the highest level and buy or call at the lowest level ?

im not sure about the pips but would calling or puting at the optimun level and choosing the longest expirey date that allows me to close at any time before the expirey date be the best propability in the long term. from what i can make out the expireys can have around 12 hours before closing and i have to wait 2 minutes before closing.

i guess im saying the longer my expirey date is that lets me close in the green would have the best chances of winning. as it always bounces within a large time frame.

dose this sound like its worth trying ?
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