Make 20 Pips Per Day Forex Trading
Bobby has a question. Is there a strategy where you know, beyond a shadow of a doubt, you can make 20 pips every day?
Bobby, as far as strategies goes, there’s so many different strategies out there, in terms of exit, and, entries and exits, in terms of a technical strategy.
The way that we find gives us the highest probability opportunity to make pips from the market, every day, is just by following the daily sentiment. Now, whether that’ll give you five pips for that day, whether it’ll give you 10 pips, 20 pips, 100 pips, it really does depend on the type of sentiment. It really does depend on the type of trade that you take. Also, the underlying volatility of the market.
So, looking at something like the Aussie-Yen. Normally, in a day trade, like the Aussie-Yen, due to much lower volatility ranges, we would expect to make anything, from, or would be happy to make anything, from, let’s say 10 to 30 pips, on a normal, standard day trade like this one, today. But, because we’ve seen all those massive moves in the market, traded recently, due to the, basically, the run up to the recession, and those big moves we saw in equities, if we just look at this range for today, we can see, it’s almost a 60 per branch to the downside, which is quite a lot for just a standard day trade. So, it really does depend on quite a couple of factors.
There’s noー there isn’t strategy, especially technically speaking, that can guarantee you any type of, you know, set pip range per day. 10, 20, 30 pips, et cetera. A trader out there that tells you, you know, you will make 10 pips, every single day by trading this strategy, you know, I would be, I would be very confident in saying that they are not being honest. If they are trying to sell something like that, a strategy that gives you 20 pips, every single day, every single market environment, timeframe, et cetera, isn’t being honest.
For us, the highest probability of looking at, basically, taking pips from the market, every day, is making sure that you’re staying on the right sentiment, the fresh sentiment, every single day.
So, whether it is trading the Aussie-Yen, like, in an example, for today, in terms of risk of trading, whether we are trading, you know, any other sentiment-type of shift. Whatever the market is focused on today, whatever is driving the markets today, we prefer to focus on those things, as we think that provides you with a much higher probability of staying on the right side of the market, and ensuring that you extract pips from the market on a daily basis. Now, that is important, also, because, there might be some days where there just isn’t any high probability sentiment driving currency prices.
Now, on those days, the very best of traders are the ones that are gonna be patient, and know that this isn’t an environment to trade in. I’m rather gonna sit out, and wait for a clear catalyst, a clear short-term driver, to, for the next highest probability move.
So, in days where there’s just nothing driving the markets, on those days, it’s better to stay out, because you might trade something, and you’ll just get a range-bound market, or you’ll be whipped around, in terms of price action. So, there might be some days where you get nothing.
There might be other days where there is ample trading opportunities. On a day like today, there’s quite a couple, not only looking at the Aussie-Yen, you could’ve considered the Aussie-Swiss, the Kiwi-Yen, Kiwi-Swiss, CAD-Yen, Kiwi-Swiss, a CAD-Swiss, I mean.
So, there’s a couple of opportunities when we have strong sentiment driving the markets, but nothing that will guarantee you a set amount of pips, every single day, in every market environment. So, I hope that helps you out there, Bobby.