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The two components of FX: focus on volume not pips

  • #1
  • First Post: Nov 18, 2013 10:23pm Nov 18, 2013 10:23pm
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”

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.

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.

Size does matter especially in FOREX J.



Happy Trading
  • #2
  • Nov 18, 2013 11:36pm Nov 18, 2013 11:36pm
Quoting Sft
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” 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...
Funny, are you a professinal trader?
  • #3
  • Nov 19, 2013 12:33am Nov 19, 2013 12:33am
What matters is your return based on your risk. I wish more people would tell me what they earned as a multiple of their entry to their original stop-loss instead of "$500" or "10 pips". 10 pips with a 20 pip stoploss (0.5 x Risk) isn't much of an accomplishment and even a chimp could do that randomly 66% of the time. Running 200 pips with a 10 pip stoploss (20 x Risk) is a much different story and requires careful analysis and skill.
  • #4
  • Nov 19, 2013 1:16am Nov 19, 2013 1:16am
Quoting Sft
When you know for sure that no matter what, no matter how, you will make 10 pips a day, 200 pips a month
Spoken like a true professional *cough*.
  • #5
  • Nov 19, 2013 4:16am Nov 19, 2013 4:16am
Quoting Kanzler
even a chimp could do that randomly 66% of the time.
Is that chimp for hire? I've been looking for someone to trade some funds for years.

Seven years on this forum and I still can't come up with a name.
Nothing worth having is easy.
  • #6
  • Nov 20, 2013 1:00am Nov 20, 2013 1:00am
Quoting Patience
{quote} Seven years on this forum and I still can't come up with a name.

Patience, as your name tells, for another 60 years on any forums and you will not satisfy
How about 51%?
  • #7
  • Nov 20, 2013 2:03am Nov 20, 2013 2:03am
I think it doesn't matter how many pips or volume of profit you made, especially when you are newbie because the main is the developing of your skills and the forming an experience.
  • #8
  • Nov 20, 2013 4:07am Nov 20, 2013 4:07am
Quoting cungchoi
{quote} Patience, as your name tells, for another 60 years on any forums and you will not satisfy How about 51%?
Yeah, you're right. I'm quite fussy .... lmao.

So what are you saying here? You have a chimp for hire that has a 51% hit rate? I hope he doesn't trade a micro account for 16 hours a day. A micro account and real money are two totally different things.
Nothing worth having is easy.
  • #9
  • Nov 20, 2013 5:32am Nov 20, 2013 5:32am
Hi Patience,
No, just a question that is there on earth any thresh hold of the hit %, or that it's just your ambition that counts?
I really mean 51% (or just above 50%) consistently can make you billionaire, while I've never seen one in my life if not on the TV.
  • #10
  • Nov 20, 2013 6:22am Nov 20, 2013 6:22am
Quoting cungchoi
Hi Patience, No, just a question that is there on earth any thresh hold of the hit %, or that it's just your ambition that counts? I really mean 51% (or just above 50%) consistently can make you billionaire, while I've never seen one in my life if not on the TV.
That's gonna take a long time for someone trading on a micro account.

And probably a very miserable existence might I add.
Nothing worth having is easy.
  • #11
  • Nov 20, 2013 7:31am Nov 20, 2013 7:31am
I like how you increase the lot sizes too.
However the only reasonable way to trade huge volumes is to have enough capital for that...
Ideally 10K for every standard lot,
4 standards, you need 40K trading capital

Can you do this?
  • #12
  • Nov 22, 2013 6:40am Nov 22, 2013 6:40am
Quoting Patience
{quote} Is that chimp for hire? I've been looking for someone to trade some funds for years. Seven years on this forum and I still can't come up with a name.
I know of two organisations you can trade funds for other people. One lead by a former bank trader. IM me if you are interested
  • #13
  • Nov 22, 2013 6:50am Nov 22, 2013 6:50am
Quoting Danny Maina
I like how you increase the lot sizes too. However the only reasonable way to trade huge volumes is to have enough capital for that... Ideally 10K for every standard lot, 4 standards, you need 40K trading capital Can you do this?
Lot of people are saying that you need such and such to trade such and such.

I think that once you know how to make a certain amount of profit everyday, 10 pips or less or whatever you feel comfortable, then the size of your trading account is not so critical. Even if it is small, as time goes by and you are still profitable, you can re-invest your earning and increase your position size accordingly.

My point is that it is better to be consistent in small profit than inconsistent in large profit.
  • #14
  • Nov 22, 2013 7:49am Nov 22, 2013 7:49am
Quoting Sft
{quote} I know of two organisations you can trade funds for other people. One lead by a former bank trader. IM me if you are interested
What? I don't want to trade funds for any one. I want somebody to trade some funds for me so that I can go and enjoy my life even more!

Life is for the living. Not for the trading.
Nothing worth having is easy.
  • #15
  • Nov 22, 2013 7:51am Nov 22, 2013 7:51am
Quoting Sft
{quote} Lot of people are saying that you need such and such to trade such and such. I think that once you know how to make a certain amount of profit everyday, 10 pips or less or whatever you feel comfortable, then the size of your trading account is not so critical. Even if it is small, as time goes by and you are still profitable, you can re-invest your earning and increase your position size accordingly. My point is that it is better to be consistent in small profit than inconsistent in large profit.

You try doing that on a $100 account and tell me how that works for you...
  • #16
  • Nov 25, 2013 5:46am Nov 25, 2013 5:46am
Quoting Patience
{quote} What? I don't want to trade funds for any one. I want somebody to trade some funds for me so that I can go and enjoy my life even more! Life is for the living. Not for the trading.
You would not trade, they trade for you so you can enjoy life.
  • #17
  • Aug 9, 2014 10:05am Aug 9, 2014 10:05am
Quoting Sft
{quote} Lot of people are saying that you need such and such to trade such and such. I think that once you know how to make a certain amount of profit everyday, 10 pips or less or whatever you feel comfortable, then the size of your trading account is not so critical. Even if it is small, as time goes by and you are still profitable, you can re-invest your earning and increase your position size accordingly. My point is that it is better to be consistent in small profit than inconsistent in large profit.
How about being consistent in profit--small and large?
  • #18
  • Last Post: Aug 13, 2014 11:38am Aug 13, 2014 11:38am
Quoting Patience
{quote} Is that chimp for hire? I've been looking for someone to trade some funds for years. Seven years on this forum and I still can't come up with a name.
I want in..I want that chimp to trade for me as well..beats reading the "holy grail" threads..
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