10 Pips Per Day - Everyday

[Acs]

10 pips a day is absolutely a non sustainable strategy for the forex market. It is 100% destined to fail.

To be successful in this market you need to have probability on your side, combine that with some experience and good money management and your half way there.

if your broker has a 3-5 pip spread and you are aiming to make 10 pips where do you place your stop? If you place it 5 pips from your entry you are now risking 10 pips so that you can make 10 pips. It is suicidal to expect the market not to move 5 pips against you especially one this volatile.

So you put your stop higher? so for every trade you get wrong, you need 1 trade ( at a 5 pip stop) or 2 ( at 15 pips) etc correct trades for every trade you get wrong.

Immediately probability is now against you. A good trade on Monday and Tuesday is instantly wiped out by 1 bad trade on the Wednesday. Completely the opposite to how it should be. Anyone who trades like this has no chance.

Personally i feel setting your self a target to get more trades right then wrong will ultimately lead to failure.

It is simply not a sustainable strategy

 

[Trader KGB]

Quote from Acs:

if your broker has a 3-5 pip spread

You can stop right there. If that's the case, don't even trade. Find a new broker.

 

[giles117]

Quote from Acs:

10 pips a day is absolutely a non sustainable strategy for the forex market. It is 100% destined to fail.

You have framed your world..

And again if you have a broker giving you spreads of 3-5 pips move on. I trade IB because the pip spread is as wide as 1 or 2 depending upon the pair. Even during news.

Also, $2.50 in commissions for a trade size up to 125000 is way beyond reasonable. If you have a pip spread of 3 to 5, their commission model is impossible to beat.

 

[Acs]

I dont know how your trading strategy may work but 3-5 pips is not an awful lot when aiming at making 100+ pips per trade.

Also it is not possible for everyone to trade on the IB

 

[giles117]

Quote from Acs:

I dont know how your trading strategy may work but 3-5 pips is not an awful lot when aiming at making 100+ pips per trade.

Also it is not possible for everyone to trade on the IB

My 3-5 pip statement was based on Only seeking 10 pips per day (I assume the OP meant per trade)

I understand not everyone has 10K to open an accoount with IB or any of the other Major players, Barclays, Citi, etc......


Again, Why pay more commish than you have to... Thats foolish.

if a pip is $10 for your pair, why pay $30 commish to trade it....

Thats insane....

For a pip of $10 my commish is still $2.50

I am already $27.50 ahead of the game....

 

[Acs]

I see,

even with a 1 pip spread you are counting on the market not moving more then 9 pips away from you and this just to make a risk reward of 1:1?

It still does not make any viable sense and is a strategy destined to fail.

 

[giles117]

Thats an assumption of what a person is COUNTING on. The market may move 20 points against from you and then move 31 points in your favor to give you your 10 pips.


So my question is... Whats your Money management strategy...

Then the pips are incidental... IMO.



However, most new traders are greedy and starry-eyed to see the realities of trading...

you winsome, you lose some...

Plan for losses and enjoy the gains....

 

[Icarus5]

Quote from Acs:

I see,

even with a 1 pip spread you are counting on the market not moving more then 9 pips away from you and this just to make a risk reward of 1:1?

It still does not make any viable sense and is a strategy destined to fail.

Thanks for enlightening us, forex-forex

We will all be sure to not attempt such a strategy since you say-so.

I

 

[CFerret]

Why would anybody in one's right mind trade with 3-5 pips spread when 1 pip spread has become reality long time ago???

 

[Acs]

Quote from giles117:

Thats an assumption of what a person is COUNTING on. The market may move 20 points against from you and then move 31 points in your favor to give you your 10 pips.


So my question is... Whats your Money management strategy...

Then the pips are incidental... IMO.



However, most new traders are greedy and starry-eyed to see the realities of trading...

you winsome, you lose some...

Plan for losses and enjoy the gains....

And here lies the fundamental problem. If you allow the market to move 20 points against you how do you know then it may not move further? maybe 50? or even 100? at some place you must have a stop that is consistent. You can not hold on forever in hope to get those 10 pips?

You obviously do not have a sustaibable strategy from what you have just said. Now if you do allow the market to move away from you as you suggest in the hope to maybe get those 10 pips, if at any point in time you take a loss of 50 pips or 100 pips or what ever, you now have wiped out 10 winning trades in one single loss.

Trade like this and you will faill 100%