What is more important PIPS or Volume?
Most people focuses on the amount of PIPS they make during their trading. Actually this is the attitude of most retail traders and it is a great marketing tool for companies selling course and such.
“Get excited we can show you how to make 200 pips a day”
Is this really the secret to FOREX success?
When you trade at the professional level, a professional trader will disregard the amount of PIPS to a large extent. What is important to a professional trader is that he or she makes a little on every trade.
So how does a professional trader make money?
Instead of focusing on the amount of PIPS he focuses on the volume of the trade. Most traders have it backward. They will focus on the amount of PIPS but can never increase the trading volume.
Let’s take an example:
Let’s say you learn how to make 10 pips a day therefore you can make 200 pips a month.
200 pips a month on a standard position is $2,000.00 USD. This is not so bad is it?
How about you are able to increase the position size to 4 standards?
Your income becomes $8,000.00 USD that becomes very interesting isn’t it.? And it is the same 10 pips a day…..
So how can you increase your lot size? Not so easy because it requires one element which is paramount to your trading career. That element is :
CONFIDENCE
When you know for sure that no matter what, no matter how, you will make 10 pips a day, 200 pips a month then you are confident in trading larger. If you trade larger you actually reduce your risk because you trade less.
Size does matter especially in FOREX J.
Happy Trading
Most people focuses on the amount of PIPS they make during their trading. Actually this is the attitude of most retail traders and it is a great marketing tool for companies selling course and such.
“Get excited we can show you how to make 200 pips a day”
Is this really the secret to FOREX success?
When you trade at the professional level, a professional trader will disregard the amount of PIPS to a large extent. What is important to a professional trader is that he or she makes a little on every trade.
So how does a professional trader make money?
Instead of focusing on the amount of PIPS he focuses on the volume of the trade. Most traders have it backward. They will focus on the amount of PIPS but can never increase the trading volume.
Let’s take an example:
Let’s say you learn how to make 10 pips a day therefore you can make 200 pips a month.
200 pips a month on a standard position is $2,000.00 USD. This is not so bad is it?
How about you are able to increase the position size to 4 standards?
Your income becomes $8,000.00 USD that becomes very interesting isn’t it.? And it is the same 10 pips a day…..
So how can you increase your lot size? Not so easy because it requires one element which is paramount to your trading career. That element is :
CONFIDENCE
When you know for sure that no matter what, no matter how, you will make 10 pips a day, 200 pips a month then you are confident in trading larger. If you trade larger you actually reduce your risk because you trade less.
Size does matter especially in FOREX J.
Happy Trading