Pips or Profit Targeting

Hi Folks,
Trade is not easy although simple, just try to know when the price Up and when the price Down.
Most of the trader although expert or even a beginner starting to race to create strategy, and most of the creator claim the strategy proven already.
The in the real life of trading , we can meet with funny thing, although the news can make a result different.
I have been reading some books, also some posts, they write down about "The trader should be have a target", daily target, weekly target, or monthly target, even yearly target.
After a few times when I started to love this kind of business, after have bad and good experience. laugh and cry. I realize that most of the main problem of the failure trader is Emotion.
The trader need to control the "emotion" and also discipline with the trader rule or plan.
The trader need targeting their Pips or Profit or how they want to make money.
I have been reading some post with the title " One percent Daily " , it's good and reasonable. This strategy and this target also can help to control the target from oversize trade.
How to reach this target, I have been trying using the simple method, for the example our target is 1% daily, I will make it double for the day, and divide with the pips that you often get it.
For example :

My Balance : $ 1000
My main target is 1% daily
My main pips target is 50 pips ( as Take Profit Number )
My trading target parameter is 2% daily.
and The pips that we often reach is 25 pips

so the lots size for trade is : $1000 x 0.02 = $20 / 25 ( "pips that often get it ") = 0.80 Lots

With this target system , we can grow the capital faster, stable, measureable.

Combine with compounding for better result.

Happy trade.

Hope this post will help.

The more you focus on pips or $ the more pressure you will put on yourself.

Identify easy trends and hop on them. Normally we have 3-4 big ccy trends a year.

Trade within yourself and use the leverage to keep you in the position and not to multiply the position size.


Its that simple.

I gotta agree. Worrying about making it that was makes you lose focus on what you really need to, which is the numbers of the trades.

Hi StingRay,

My money management rules are not emphasised on pips. Because trading is a number game, and your edge is your trading plan, I focus my exit based on Risk Reward. My exit rules requires at least a 1:3. I only differ from that rule in case of when I'm in a trade on the day of a "major" news event in that pair. To me there are only a couple of major new events in a month, one of them is like today the NFP.

Greetz, Dutch Trader

Hi StingrayEA
With a 1K-Account, to take a single example by keeping indoors, I prefere to trade with 0.05 lot sizes or parts thereof (e.g. 5 x 0.01 orders at different entry- & exit points at the same currency pair - or combi trading, baskets or the like).
If I would manage a profit level of about 1% per day, I need 20 pips on a daily basis, if 1 pip = 50 cents, to obtain quantity rates for 10.-$ a day.
More pips should be used for the warchest - to save up for a rainy day.
Be aware that every trader has also to manage loss orders beside his profit target & if he trade with a SL concept or not and
that not every price process has the same probability for a winning trade - that says something for a more adjustable risk management.
Kindest regards.
FXcube

If you focus on fix profit, it will pressurize you. You should trade with your experience without thinking about the profit and pips.

Profit targeting should be based on your ability. How much my ability is allowing me that's important. If I can predict a 20 pips movement that should be my profit target.