How many pips should I aim for when learning to trade Forex?

Question

Whats a decent number of pips to earn on a trade? I've generally been pulling the plug at 15 which is around 10% of my $250 mini account.

What's a respectable pip haul for a single trade? I have the self control to not get greedy, but I don't know where the line is. I also realize I could do a trailing stop, but I feel more comfortable locking in my profit when I have it.

Answer 1

I like the strategy of having a MAP (Minimum Acceptable Profit) objective of 15 pips. You might try a slight modification of this by trading an even number of lots and sell half the lots when you hit your MAP of 15 pips and let the other half ride with a fairly tight trailing stop. This way if you are in an upturn you can go along for the ride knowing that you are already in profit.

I used to use a similar strategy for about 3 years when I was a technical trader. It was actually quite successful but I found myself spending quite a few hours glued to the computer. For the past 6 months I have been enjoying the simplicity and profitability of conservative hedge trading strategies.

If you send me an email I can send you an analysis and you can compare the two trading techniques.

Keep up the good work.

Paul

Answer 2

As a self-taught drummer myself, i can tell you that there really is no 'fast" way to learn an instrument. It takes a lot of patience, practice, discipline, and hard work. Now that being said, some people do learn quicker than others so it all depends on the person. I have two cousins that both play guitar and both are self-taught. My one cousin Terry practiced just about every day and picked it up quicker than my cousin Dave, who didn't practice nearly as much. Terry became pretty darn good in about 8 months. It all boils down to how determined you are, how much you practice, and how quickly you pick things up. My advice would be to get an instructional book or DVD and learn a few chords. If you do it on your own you will save a lot of money and you can go at your own pace. Guitar lessons are not cheap these days, unless you know someone. Just give it a shot on your own for a month or 2 and see how you progress. Then if you feel you need lessons to get better, then find a good teacher that won't be too expensive. But the key is to practice....practice.....practice! Good Luck!

Answer 3

I think it will really depend on your own observations (i.e. what is the usual size of an up or down swing in your trading time frame). I am of the opinion that consistency is more important than the size of the profit.
-http://smokingflax.blogspot.com-