Some say "The sky is the limit".
I say "I own the sky".
My Fix Plan: SL 20 pips & TP 5 pips 4 replies
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I lose 40 pips and win 6 to 10 pips... 17 replies
spread on GBP/JPY @ alpari is 12 pips intead of 7 pips they claimed to be 6 replies
DislikedWhat's all this pip-mania I keep reading on the forums? it doesnt matter whether you have made 700 pips a month or just 100 pips. What matters is equity increase, max drawdown, consistency ratios, etc, not the pips themselves.Ignored
QuoteDislikedI have heard that if you concentrate on pip gains and be consistent, you can make millions by slowly raising you lot size. I have noticed when 1 pip = $1.00 I can l lose 1000 pips and be and not stress, but put that $ sign in there and I start getting nervous.
DislikedSure, but would that be $1 pips for a $1000 account or for a $10 million account?
See? pips in themselves are meaningless. It's just the "score" of the game. Let me lay an analogy out for you: in a soccer game, you might have scored 6 goals which is quite a lot for any professional game, but also you may have been scored 8 goals against you, have had two of your players injured and another four have been booked a red card by the referee. So, in such scenario, your 6 goals dont look quite that appealing, do they?
Focus on the important variables of your system, not on the "score counting" (meaning pips), and you will do much better.Ignored
DislikedSure, but would that be $1 pips for a $1000 account or for a $10 million account?
See? pips in themselves are meaningless. It's just the "score" of the game. Let me lay an analogy out for you: in a soccer game, you might have scored 6 goals which is quite a lot for any professional game, but also you may have been scored 8 goals against you, have had two of your players injured and another four have been booked a red card by the referee. So, in such scenario, your 6 goals dont look quite that appealing, do they?
Focus on the important variables of your system, not on the "score counting" (meaning pips), and you will do much better.Ignored
DislikedPips are meaningless. You can be negative in your pip amount and still have an account increase and you can also be positive in pips with an account decrease.
Example...
You have a hypothetical $10,000 account. You place a trade with a 100 pip stop risking 3%. You are stopped out. You balance is now...$9,700.
Next you place a trade with a 15 pip stop risking 3%. You gain 60 pips for an increase of 12%. You account is now $10,864.
Total pips = -40
Account increase from original balance = +8.64%
This is negative pips with an account increase.
Make sense?Ignored
DislikedWould you still be satisfied with a negative amount of pips with a net profit?
That's like having a store, and the big ticket items makes you the most money, and the small items you sell at a loss. Are the small items what drives in the business to buy the big stuff, or are you just selling at a loss.
If I'm trading in the penny stocks, and I trade 100 dollars and lose 40 percent I'm at 60 bucks, and now I get a 300% stock so now I have $180, am I 100% satisified? Not 100%, I still would work on the losers to mitigate those and try not to do it again.
To ruin the original question will make everyone be a loser or winner by varibles that not all can duplicate. Someone with 50k will always have more than someone with $200, so what's the point now? It's one thing to not want to divulge your record....but the Hyatt will always make more money than the Days Inn. That's why there's things called occupancy rate and cost per room, etc. Like pips, those are ALWAYS the same no matter the size and price of the room/hotel.
It's a standardizing statistic. If you made money on losing pips, that's on you. Good job on money management, but it doesn't make it less important. I'd be worried after that.
If I turn 13G's into 1.3 million, did I do worse than the hedgefund who make 5million last year? Obviously it's a yes using the reasoning of this board.Ignored
DislikedMy statement was explaining how little an effect pips actually have on an account, I was not implying that one should focus on having negative pips with a positive return.
Pips don't pay the bills. Returns on capital do.Ignored