Can You Live On 5 Pips A Day?
Can You Live On 5 Pips A Day?
Can you really live on 5 pips a day? Sometimes as Traders we think that we need to bag all the move to make any real money in this market.
And that my friend is the farthest thing from the truth out there. There are traders that use the 4 Hour Bar Strategy, Or any Bar for that matter. One hour, Daily. You get the idea.
And they trade large positions and get there 5 pips and call it a day?
How It Works?
It is really simple to be honest, You set a buy or sell on the break of that bar and set a Take Profit for 5 pips. Nothing to sell here, Very simple to be honest. Now where all the talk will come from is where to place your stop loss. Is it the same? 5 Pips? And if not, then it would not be a 1 to 1 trade.
Risk vs Reward?
The truth is with this strategy, is all you are trying to do is get paid on a daily basis right? And at the end of each trading day, that is all we are all trying to do.
So when it comes to risk and reward that is your call all the way. same for stop loss for that matter. I know traders who trade 150 a pip and make there 750 for the day and they are done with the market.
Now some will say, why? why not go for more? The truth is what is easier to do here? make 5 pips? or make a couple hundred?
Trust me when i say the five pips is way easier, and at the end of the day we are all trying for the same thing here right? Just to put food on the table and the kids through school.
It is way easier to grab your little take from the markets and run. Instead or trying to grab a whole move, and that is the truth when it comes to markets.
Now with that being said, there are those guys that grab massive swings and i say bravo to you folks. But at the end of the day, i need to get paid for doing what I Love and am a big fan of this strategy.
Give it a Try
If you have struggled in the markets and just want to be Consistent and don’t we all really? Then maybe instead of looking for that next trading system and spending hours a day at your desk. You just give this a try and see how it improves your results?
Trust me when i say, you can make a living in this market. I have for years and you can as well. It always like anything in life really comes down to the person trading.
Keep in Mind
This is just AND IDEA AND NOT TO BE TAKEN AS FINANCIAL ADVISE IN ANY SHAPE OR FORM.
The ideas here are just that, my ideas for trading the markets, and this is for education purpose only.
David Is A Sixteen Year Veteran In The Forex World. He Gives His Advice On What Works And What Does Not.
U.S. Government Required Disclaimer – Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.