2 pips a day

[dunitlongpole]

Hello.
I am 17 years old and am trying to start trading forex on a demo account. I have read about support and resistance, candlesticks, etc and i am wondering what you guys think would be the best technique to gain 2 pips (long or short) per day on the USD/EUR pair? If it makes any difference, I have a 3 pip spread on my account. I would like to gain this with minimal risk (I know forex is risky but relatively speaking)
Thanks in advance for your help!

[ScottH]

I don't think 2 pips a day is a very good goal. Including the spread you will HAVE to gain 5 pips a day, and what will your stoploss be set at? 10? that would be a 1:5 reward risk ratio, which really should be closer to 2:1 or 3:1, 10 to 15 times lower than your original R:R ratio. Instead of going for daily goals spread it out a bit more, something like I want to make 50 pips a month on average, or a 5% profit return monthly. If you aim for a daily goal, what happens when you hit the stoploss at 10 pips? you'll want to fain it back, put on another trade, and before you know it your -30 pips for the day before you quit, all to make a possibly 6 pips. What you are wanting to do is scalping, and can be difficult for beginners, or anyone for that manner. It may seem like a lot of patience but generally the longer the timeframe and the longer a support/resistance line is, as well as the longer a market ranges,the bigger the move will likely be when it finally does breakout. Just my opinion.

[ampris2000]

forget about pips per day.

just learn to be a good trader and you'll have more pips than you thought possible.

[mrbrint]

I agree with ampris

[tonyj]

Originally Posted by ScottH

I don't think 2 pips a day is a very good goal. Including the spread you will HAVE to gain 5 pips a day, and what will your stoploss be set at? 10? that would be a 1:5 reward risk ratio, which really should be closer to 2:1 or 3:1, 10 to 15 times lower than your original R:R ratio. Instead of going for daily goals spread it out a bit more, something like I want to make 50 pips a month on average, or a 5% profit return monthly. If you aim for a daily goal, what happens when you hit the stoploss at 10 pips? you'll want to fain it back, put on another trade, and before you know it your -30 pips for the day before you quit, all to make a possibly 6 pips. What you are wanting to do is scalping, and can be difficult for beginners, or anyone for that manner. It may seem like a lot of patience but generally the longer the timeframe and the longer a support/resistance line is, as well as the longer a market ranges,the bigger the move will likely be when it finally does breakout. Just my opinion.

I wrote a longer one below but it didn't go thru. Couldn't quite make out what
you meant by longer....both s/r, and market range. Don't know if you're refer-
ing to the stretch or the holding period. The word "greater" is different from
the word "longer". Dunitlongpole....should hone his skills first on the demo
and has gained consistancy before even thinking about the real...and even
there he should do it first with the mini. It's much easier to gain 2 pips than
it would be 20. It's amazing how so many traders are not aware of the
average daily range ratio. An example would be 50 days of average daily
range divided by the spread....which the best would be Eur/USD...a 3 by
most brokers. And the big money is gained only by substantial leverage...
with sufficient bank roll to do it. Dunitlongpole is almost forced to go with
your suggestion...which is really an investment. 1X to 3X is an investment.
3X-6X is speculation...7X-20X is the "Russian Mountains" as suggested by
a fantastic trader. So the ratio above ( 50 days of ADR divided by 50 and
this divided by 3 for the EUR/USD) would mean 6 pips per day. If this seems
like it's too little, then you have false expectations. You need to look for
20 times the spread....and hoping to get 5% to 10% of the average daily
range to gain a profit of 6 to 12 pips...this on a EUR/USD...if given half
the spread on most platforms. There are brokers that give 1.5 instead of
3. Why? Because inefficiencies greater than that are discovered and exploit-
ed by the market quicker than you can blink your eye. 6 pips a day on a
20X leverage will yield 1000% in a year. If you've got a 20X it's your friendly
market maker who will try to gun your stop. Another of those false fabrication
put out that the forex market doesn't run the stops. There is a lot more to
this than what I've tried to explain here. Dunitlongpole should try out the
2 pips with his demo and see what he gets....even though you (ScottH)
thinks otherwise....as well myself.
ciao
Tony

[tonyj]

Originally Posted by dunitlongpole

Hello.
I am 17 years old and am trying to start trading forex on a demo account. I have read about support and resistance, candlesticks, etc and i am wondering what you guys think would be the best technique to gain 2 pips (long or short) per day on the USD/EUR pair? If it makes any difference, I have a 3 pip spread on my account. I would like to gain this with minimal risk (I know forex is risky but relatively speaking)
Thanks in advance for your help!

dunitlongpole:

Advice is cheap. You really need to do what you're doing now. But you should stick to the "demo" and use it as a back up. Hopefully, this explanation will give it credence. Stay on the "demo" until any strategy (you need one) works for you. When you have consistency with it....then go over to the real. But this will be a MINI..Now when you get into the real....your mind will start to play tricks with you....get ready for this. It's all part of the road to that golden hook....and it's long. 90% of the hopefuls don't get there....because of one's mind....it's called "human nature"...and in the market "the herd". When yoy get in the real (mini) start to build up your account. Do slowly....and take your time. Use the knowledge that you gained in the "demo". Do the same in the real as you did in the "demo". If you start to get too many losses....STOP right there with the "real"....and go back to your "demo"....now stay with what you were doing on the "real" ....and continue the same tactics until you get back on track. You'll be learning about the market and yourself all this time. Once you build up sufficient bank roll
you will now go to a "full" account. I forgot to mention that while with
the mini you were increasing your leverage....starting with 1X...then 2X
and so forth. I hope you get the drift of this explanation. If you get too
many losses....then go back to your "demo".... This where you have to stay
focused on your strategy. I'm an old man....an octogenarian, an old
commodity trader, who made it. But I....who has come back over to this
forex to find out about it... I would have to do it all over again....just like you
are doing it now. if I really wanted money over here. Fortunely I don't have
to. Good luck kid....and watch out for those low inside curve pitches.....
ciao
Tony

[jb1220jb]

Very simple.
..
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2 pips per trade for sure.
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..

I guaranty.

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The perfect system
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Be a forex broker