How Many Pips Per Month Is A Great Result? - page 8
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Is 400 pips a month a good target?
Yes it is a good target. However most people out there earning at least 1000 pips per month, just search google "1000 pips month" and you'll wonder.
However most people out there earning at least 1000 pips per month
Heaven's above this forum has gone to the dogs. Just to bring some reality to the situation, the systems that I trade average just over 7 pips a day.
...
Heaven's above this forum has gone to the dogs. Just to bring some reality to the situation, the systems that I trade average just over 7 pips a day.
can you share your system?
I personally feel like keeping track of performance in % rather than pips is the best way to do so. Here's why.
Lets say you risk 2% of your account on every trade. You get into one trade and you have a 20 pip stop and you end up getting stopped out for a 20 pip loss which is a 2% loss being that you risk 2% per trade. Then you get in another trade with a 100 pip stop and a 100 pip take profit. The trade hits your take profit of 100 pips. Effectively you made 80 pips but you risked 2% on both trade so your actually break even over all.
This is the way a lot of services deceive people with performance. They keep track of some trades in pips and don't account for the fact that they had a 200 pip stop loss and you would have had to enter the trade with a small lot size to keep your safe risk per trade. Hope this makes sense and helps:)
-Sterling
Hey James,
To answer the original question for this thread, how many pips is considered good depends on how much you are risking per trade, how big your stop loss is in pips, and how frequently you're trading.
If you risk 5% of 10,000 account with a 50 pip stop loss and take profits at 100 pips, that's a larger position size than the same conditions for a 100 pip stop loss.
What really matters is not the number of pips per month, but your expectancy. This is how many pips you expect to make per trade.
Expectancy = Take profit size * win rate [%] - Stop loss size *loss rate [%]
If you are a day trader, a good number may be 5-10 pips for expectancy. For a long term position trader (weekly), this should be more like 100 pips. People may disagree with me but this is my opinion.
Hey James,
To answer the original question for this thread, how many pips is considered good depends on how much you are risking per trade, how big your stop loss is in pips, and how frequently you're trading.
If you risk 5% of 10,000 account with a 50 pip stop loss and take profits at 100 pips, that's a larger position size than the same conditions for a 100 pip stop loss.
What really matters is not the number of pips per month, but your expectancy. This is how many pips you expect to make per trade.
Expectancy = Take profit size * win rate [%] - Stop loss size *loss rate [%]
If you are a day trader, a good number may be 5-10 pips for expectancy. For a long term position trader (weekly), this should be more like 100 pips. People may disagree with me but this is my opinion.Actually i agree with ya for the day trader scenario or at-least this is what i have been doing as a scalper take anything above 5 pips till 10 pips
20 pips per day....
One of the most valuable things that an online forex trading course can show you is how valuable 20 pips a day is..
1 standard lot at 20 pips/day = $200/day = $50k/year
2 standard lots 20 pips/day = $400/day =$100k/year
3 standard lots 20 pips/day = $600/day = $150k/year
5 standard lots 20 pips/day = $1000/day =$250k/year
10 standard lots 20 pips/day = $2000/day = $500k/year
If you were obeying 2% risk management, then you can multiply your account about 5 times a year.. at 4% risk management, you can multiply your account roughly 10 times /year. To demonstrate..
If you have a $10k trading account and you are trading at a 2% risk, then you can risk $200 per trade (2% of 10k = 200). that means you can trade 1 lot with a 20 pip stop and 20 pip target (1:1 risk reward, least acceptable).
If you can make 20 pips/day on avg with that 1 lot you will make 200/day=1000/wk=50k/year..
So, you just made a $50k/year income with just a $10k account!! only risking 2%. Most traders dont appreciate the leverage we get, and risk way too much, only blowing their accounts before they know what went wrong!
At a less conservative 4% risk management level, you could risk $400 per $10k. Using the same 20 pip model, we would trade 2 lots with 20 pip stop and target. 20 pips/day would now equal $400/day=$2000/week=$100k/year. So, a $100k income was achieved with a $10k account, using the same 20 pips/day strategy.
What's important is that we never need to try for more pips/day, thats too difficult and novice forex traders have a hard time realizing this. It is more beneficial to be consistent at a small number of daily pips and then gradually increase your lot size as your account grows.
btw, this is NOT compounding, this is taking your profits out every week. If you were to leave the money in your account and increase your lot size according to your account balance you would see astronomical gains.
Indeed the lotsize and the amount of trades a day is more significant then just the pips alone.
It depends on strategy
Pips per month depends on your strategy. If you trade swings then there can be even 1000 pips per month. If your trades last no more then 1 hour, then I would suggest to target from 10 to 50 pips per day. Also it's important to set maximum lost pips per day. That should be similar to your daily target.
Me too. I really have no clue how many Pips per month is the basis as a great result. please help me. thanks.