5 Pip trades
When we talk about idea – strategy to trade for cca 5 pips profit per trade, I have to say that it is Real.
I have been trading that way in last 10 years constantly , developing different systems and learning from every single mistake that I made. It is very demanding way of trading, both physically and psychologically – and probably that is a bigger problem than achieving 5 pips…
You can use from 2 min to 5 min chart ( 1 minute is untradeable in real market conditions )
Firm Risk management has to be applied :
R/R minimum 1:2 – preferably 1:3
Stop Loss pre set and never changed
Profit taking manually depending on the situation ( experience )
Leverage High to Extremely High ( so from 1:100 – 1:500 otherwise you are wasting your time )
Never change the trading plan in between ( you enter on a signal of 3 min and decide to stick around longer as you saw something on 5,10,15 min chart – you’re dead )
Never hesitate – just execute – or from +3 you go to -5 in seconds
Probability of your system has to be over 80%
You can’t chose which signals you’re gonna trade and which not – you must execute all of them. Or you’ll end up picking the wrong ones.
To be able to come to such a system, you have to use very simple techniques – anything even remotely complicated takes too much time – trade gone ( also, no time to do your yoga exercise prior to entering the position – coffee is ok as long as it is on the table and exactly in the same place …every single day, or you gonna have it all over your comp )
Trading can be done in hour and half to tops 2 h at the time. Anything more, you are lost.
Important – you have to have a broker that gives you max 0.5 spread, or fixed 0.0 with the commission .
Depending on the day, you end up with everything between 2-3 and 30+ pips
You trade only in the bracket between Europe open and NY close
High liquidity will pump up your profits, but there are days with Low liquidity that made my day big time – somehow clearer to trade…
Add comment
You must be logged in to post a comment.