The Best Way To Earn 20 PIPs A Day
One of the most asked questions we receive is, 'can I earn 20 PIPs a day using your training?'.
In order to answer that question, we need to ask you a question, have you ever seen times when a market does not move 20 PIPs in a day? It happens. So on days the market does not move 20 PIPs, how do you as a trader make the 20 PIPs a day you want or need? The answer is you can't.
What dangers does trying to make 20 PIPs a day present to most traders? The danger exists first in the trader's mind and then in the trader's trading account. If the market is not offering 20 PIPs a day, how do you make 20 PIPs a day? The answer- you can't. You can only make what the market offers you. When most traders see that the market is not offering them the PIPs they need for a day, they often become frantic and that leads to becoming irrational and that usually leads to big trading losses. Why? In hopes of getting their 20 PIPs per day, the trader usually goes to a much smaller time frame like a 5 minute, 1 minute or tick chart. The trader ignores that the market is not offering an easy 20 PIPs for the day and is trying to force the market to give them their 20 PIPs. The trader fails to realize the smaller the time frame chart they use, the faster they can lose their money. The trader usually loses money in these lower time frames because they are not familiar to the environment of the faster movement on lower time frames.
So what is the best way to earn 20 PIPs a day?
Imagine you are playing baseball and you are up to bat. A professional pitcher comes up to the mound and throws his fastest fast ball to you to try to hit. What are the chances you are going to hit his fast ball? The chances are very small. Now, imagine a pitcher comes to the mound and throws the ball to you soft, slow and underhand. What are the chances you are going to hit the ball? The chances you will hit the ball are very high. This is how we pitch to children to make sure they hit the ball and instill confidence in them. Trading lower time frames is like trying to hit the ball thrown by a professional baseball pitcher. Trading a higher time frame is like trying to hit a ball that is being thrown to a small child.
The best way to earn 20 PIPs a day is to think in terms of averages. If you trade from a 2 hour or an 8 hour chart once a week and make 100 to 200 PIPs per week, what is your average PIPs per day? The average is 20 to 40 PIPs per day. Would you like to make 20 to 40 PIPs per day? Of course you would. The best way to earn 20 PIPs per day is to think in averages and trade from a higher time frame, not a lower time frame.
A two hour time frame can offer 1 to 3 trading opportunities per week per trading in
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