AS I promise , April blog will be about 10 pip trade by popular demand. The question is why 10 pip ?
1. Because it is easy , on average , the currency moves more than 10 pip a day. What are the chances of getting 10 pip ? High!
2. Compounding it over the long run, you will definitely get a consistent low risk good reward profit growth.
3. It does not take so long to trade for it and requires not much of a screen time as well!!
4. Probably the fastest way to earn and trade for a living or when you have abundant amount of Trading money, this could be your weekly income.
4 reason is enough I think unless you can think of anything that can be of a disadvantage. One thing about the 10 pip, DONT BE GREEDY AND DONT BE TOO EUPHORIA .
Learn to let go and not bother what the price is doing afterwards. Get use to this feeling, You will succeed in just a 10 pip trader.
When and How ?
Between 0800 – 1700 GMT Look for demand and supply on a 15 minute chart
If you notice any demand supply after or prior the times I just mention, don’t bother about it.
1. You will ALWAYS find either demand or supply after 0800 GMT. You won’t miss it.
2. Set and Forget
3, Always aim for 1: 2 RR or 10 pip target. If it happens to be less than 10 pip applying the 1:2 RR, set your target 10 pip! If it is more than 10 pip , then you just have a bonus!
4. ALways use realistic GOALS. Earn 10 pip Per week ONLY. which in a logical sense, achievable!
Stick the above rules, you will definitely achieve it.
Lets do the Math:
10 pip Per Week. = 40 pip per month.
40 X 12 = 480 pip per year
10 pip = 1% earning gives 4% earning per month ( which in Hedge Fund term considered to be best Performance )
so in a year 48% returns.
With 1 Lot equivalent of a $400 a month grocery Money.
With 10 Lot equivalent of $4000 a month salary.
With 100 Lot equivalent of a $ 40K a month Executive Salary may be ?
Normally Retail Brokers allow up to 500 Lot max. or 200 Lot. which is with 200 = $80K a month. Possible? may be.
I had once tried 100 Lot for just 10 pip. The slippage is just enormous up to 3 – 6 pip. Why ? There isn’t just another trader or the broker does not have enough money to trade against and unable to meet our price offer. SO the trade may be half filled or just a quarter filled.
So whats the most ideal Lot size ? 30 Lot is much better to comprehend the 10 pip trade. Which gives you at least $12K a month. Which is more than enough .
Lets try it for April, see how much we can earn from it.
See attached chart below of this week.
OF course With a Trained and professional skill, this can be achieve Daily. But For the people out there just trying or experimenting. Once a week is adequate!
And do not use the same account , if you are having separate strategy, allow specifically for 10 pip account. OR elase your performance will be inconsistent!