Can You 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.
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?
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?
Keep in Mind.
The ideas here are just that, my ideas for trading the markets, and this is for education purpose only.