Power of 20 pips a Day - 20 Pips Compounded | Forex
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http://www.forexmalibu.com/20pips.php - In this next Chapter, Sam explains the Power of 20 Pips when compounded over the course of a year. This is a live excerpt from our live forex trading training course in our online trade room. We utilize Tiger Time Lanes Forex Trading Software
Comments
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100 pips a week with what lot sizes? What leverage?
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What if I start with 100k on compounding interest 100k 200k 500k trades ( whatever I have available) and playing for 1% profits each day. 1% is easyyyyy to make and 1% of 100k is 1k. 1k is way to weak for trades on big name stocks
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100 dollars starting out with 1000 trades with 1% return on top of eachother compounded looks like this. 100X1.01^1000= 2,095,915.56.
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Hi Smokeee, If you are trading 1 standard lot, each pip is worth roughly $10 (every pair is different). so if you are trading $1 per pip, you are trading 1 mini lot. that is acceptable on a $1000 account if you are not risking more than 20 pips. hope that helps
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New to trading, I thought 1 pip on 1000 is only 10 cents?
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Hey Sam, how much is the trading room? I'd like to trade with you guys
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Yes, great response zeejayr!
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no, because the risk per trade is around the 2% mark -- never losing more than 20 pips, ideally much less. So, trading $1 per pip on a $1,000 account is ok, AS LONG AS you never allowed it to go against you more than 20 pips. The way I do it is : Put a hard stop-loss at 20 pips.... but I will cut my loses long before my stop is hit if I think I shouldn't be in that particular trade.
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the idea is to not lose more than 20 pips in a day either.. Once you have stabilized your trading to be within -20 to +20 pips per day (not having -50 pip days) and are getting close to +20 per session 4 out of 5 sessions, then you can start using a live account.
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In making those hypothetical 20 pips per day (or 10 pips per day), what is the stop loss amount would you be using?