Trading For PIPS.

[Profitsniper007]

I think one of the best pieces of advice any trader can heed is to focus on pips rather than money.

Especially when you are starting out, it is best to trade in small lots sizes and just focus on becoming profitable and collecting more pips that you give away.

If your focus is on trading for pips you will not do the reckless things that sink many traders before they even get away from the shore.

Things like becoming frustrated and increasing lot sizes to cover losses (and being exposed to serious risk) or getting out of profitable trades too early because you see a nice profit.

To paraphrase the "mind of over matter" saying, in forex, you should have "mind over money".

Once you are proficient in collecting pips and being net profitable in pips each month, you can increase lot sizes and make more money.

Get the PIPS, and the MONEY will follow.

Have a good risk/reward ratio, have a good strategy, follow it religiously and you SHOULD make money.

 

[malaguti]

I think one of the best pieces of advice any trader can heed is to focus on pips rather than money.

Especially when you are starting out, it is best to trade in small lots sizes and just focus on becoming profitable and collecting more pips that you give away.

If your focus is on trading for pips you will not do the reckless things that sink many traders before they even get away from the shore.

Things like becoming frustrated and increasing lot sizes to cover losses (and being exposed to serious risk) or getting out of profitable trades too early because you see a nice profit.

To paraphrase the "mind of over matter" saying, in forex, you should have "mind over money".

Once you are proficient in collecting pips and being net profitable in pips each month, you can increase lot sizes and make more money.

Get the PIPS, and the MONEY will follow.

Have a good risk/reward ratio, have a good strategy, follow it religiously and you SHOULD make money.

and with your vendor/coaching badge being a shining beacon to everyone reading this; you are going to show us how to do this are you?

 

[Profitsniper007]

and with your vendor/coaching badge being a shining beacon to everyone reading this; you are going to show us how to do this are you?

If people so desire. If not, it is just a bit of helpful advice

It is a requirement for me to declare my intentions here, so the shiny beacon is a obligation rather than a choice.

 

[Rambo35]

I always set my targets in forex based on pips, but you need to know how much money you can afford to lose so you don't violate your risk management. In the end I guess it is a combination of both.

 

[Profitsniper007]

I always set my targets in forex based on pips, but you need to know how much money you can afford to lose so you don't violate your risk management. In the end I guess it is a combination of both.

Yes, I agree you have to be aware of the pips value.

However, the point I was tying to get across is that most successful traders think in pips.

For example, if you ask them how much money do you want to make a month, or what percentage - generally- they tell you they do not think in that way, they think in pips.

 

[Shakone]

Yes, I agree you have to be aware of the pips value.

However, the point I was tying to get across is that most successful traders think in pips.

For example, if you ask them how much money do you want to make a month, or what percentage - generally- they tell you they do not think in that way, they think in pips.

But you can be positive on pips and losing money. So I wouldn't be so confident that thinking in pips is what most successful traders do. Not even sure if most successful traders even trade forex.

 

[Profitsniper007]

But you can be positive on pips and losing money. So I wouldn't be so confident that thinking in pips is what most successful traders do. Not even sure if most successful traders even trade forex.

I can only speak for people I know personally and conversations I have had with people who have been mentors to me over the years.

 

[AKK77]

But you can be positive on pips and losing money. So I wouldn't be so confident that thinking in pips is what most successful traders do. Not even sure if most successful traders even trade forex.

if you are positive on pips and losing money, it's a problem of money management.

 

[Profitsniper007]

if you are positive on pips and losing money, it's a problem of money management.

Agreed.

 

[Profitsniper007]

Which is usually a problem with discipline.

 

[Shakone]

if you are positive on pips and losing money, it's a problem of money management.

In what way?

 

[AKK77]

In what way?

there's 2 way to see if you have a positive expectancy. the first is to check the pips balance, a positive pips mean that your strategy have a positive expectancy. This is a pre-money management expectancy and mean that if you trade a fix lot size you make profit if your expectancy is positive.

the second, is done by checking your loss average and profit average with your win/loss probability. By doing this you have your expectancy (positive or not), but it's a money management applied expectancy and you could have a negative one even if the first method give you a positive one.


with an extreme example: take 2 trade with similar risk, the first is a win with 100 pips the second a loss with -70 pips.

with a fix lot you have a positive expectancy and you make money, but what if your position is 0.5 lot for the winning trade and 1 lot for the losing one.

Of course personally I don't think that a fix lot strategy is the best way to make money.

 

[the hare]

if you are positive on pips and losing money, it's a problem of money management.

A converse argument could be that if you are negative on pips and making money, its due to money management. Neither argument serves much purpose.

Lets get real, we have a vendor, who is practically clueless, spouting complete nonsense in order to market a product or service, and he does so because the management at t2w encourages this garbage.

Threads like this really should be deleted before they even begin

 

[AKK77]

A converse argument could be that if you are negative on pips and making money, its due to money management. Neither argument serves much purpose.

Lets get real, we have a vendor, who is practically clueless, spouting complete nonsense in order to market a product or service, and he does so because the management at t2w encourages this garbage.

Threads like this really should be deleted before they even begin

I agree, the best situation is to have positive expectancy with the two methods.
But we all knows that a trading journal is very important and checking this kind of statistics is crucial to have a good perspective.

for info: i don't know Profitsniper007, and even if he is a vendor he have still not offered anything to sell. and i'am personally not interested to buy any product, strategy, method....

 

[Rambo35]

Yes, I agree you have to be aware of the pips value.

However, the point I was tying to get across is that most successful traders think in pips.

For example, if you ask them how much money do you want to make a month, or what percentage - generally- they tell you they do not think in that way, they think in pips.

I know what you mean .

 

[Shakone]

So if I trade mexican currency, risk 1% and make 1000 pips to gain 1%, and I trade EURUSD, risk 1% and lose 10 pips (lose 1%), then am I down overall considering commissions, but up 990 pips.

So what was the problem with the money management in this example, and are these professional traders super happy because they're up 990 pips, and that's how they think?

 

[NVP]

are we all square now on pips vs profit ?.................ZZZZZZZZZZ