Forex Tutorial
March 23, 2017

10 pips a day can make you rich quickly

I have various trade calculators to assist in my MM before each trade session to figure out how many lots I may place at a given S/L, so i’ve crunched similar numbers i’m sure, though i haven’t seen the spreadsheet you are speaking of. There have been similar posts/questions and some of the comments went along these lines;

Yes the numbers are huge, though having a daily “goal” of “just ten pips a day” might in the long run be a loosing model. As many will point out you must have good MM in place. To win 10 you must be also willing to risk. But how much? “Just ten”? Then with the spread you will actually lose 13 to 15 depending on the spread/pair traded.

I am in full agreement with the idea that the hype/pressure to catch “The Big Move” is very intense in the general forums. On a casual read, one would come away with the idea that if you don’t grab big moves you are not that versed/experienced of a trader. Yet i believe that if one consistently were to trade a model that could grab 10/15ish pips consistently with proper MM they would be set for life w/a great career. If one were to look at purely mechanical trading systems (I’m thinking EAs here), one would see that the bots that shoot for 10 to 20 pips a trade are hands down winners over those that hold out to close profits at 100, 200 or more pips.

One other common thing that happens is that once you see a nice 10/15 pip move, and you take profits according to your model/MM…then see the “move” go onto 40/60/80 or more pips you might kick yourself mentaly. Then next time instead of following your model/MM and taking profits at 10/15 you try to catch the “Move” and it retraces before you think to put a BE+10 S/L. Now you are in the hole, and hoping it will once again resume the original trend.