[PipVentures]

Originally Posted by RoddyPipper

Keyword there is "bet". Betting is gambling not trading. There's another thread here comparing forex to poker.

OOp's I used that word again

You also start the trade at -$300 on a small 3 pip spread. You start every trade minus the spread and some can be a big spread so how far negative do you allow it to go before you cut your losses? A profit target of only 2 pips with a 20 pip stop is dangerous especially considering the odds. This is just my opinion but i would much rather manage the risk and trade when the risk:reward ratio was in my favour at least 1:2 instead of against me 10:1.

Thank you Roddy. THis is what I was getting at. Now I understand. What I am talking about is probably defined as scalping and very risky.


She's trading on the 15 minute chart and making a few small trades to build up the 40-100 pip average of James' system. I'm pretty sure that's how everyone in his trading group is doing it also. Then there's the EMA Step system also on the forums here where they're making a couple hundred pips from single trades off a daily chart. In both, the profit targets are always greater than the risk(entry-stop).

Now here though I will say that this is incredible! Even if you were to follow Rob Grespi you would only average about 10 pips per day (if not Im sure Im close) which I would say is a very safe number. Then you just increase the trade amount as your account increases.

I don't scalp so maybe I have no idea what I'm talking about but it seems to me that scalping is dangerous because your risk is always greater than your reward. If you can get good at it so it works for you then great but I'd prefer to have the odds in my favour. Scalping 1-2 pips is really 5 pips or more when you factor in the spread and I've seen trades never go positive before especially with the larger spreads. When do you cut the bad trade off and how many 1-2 pip trades after that do you have to win without losing again to recover the lose of that one bad trade?

Again, I think maybe this is what I was talking about and I now see that this would be very dangerous because if you are only trying to make 3-5 pips on a trade, then your stop should be no more then what you are trying to profit. If you calculate the spread, you only have room to go down 1-2 pips before you are stopped out. There does not seem to be enough room to play.

Thanks for the help Roddney. Have a great day. Ill have to check out James system also.

Mike Lewthwaite


P.S> It just hit me, About the 100pips per day system. I think I understand now. If you want to make a 100 pips per day and you are making 1-3 trades, then you have to have larger stops and therefore larger risks to make these pips. Therefore if you have a 10,000 account using standard lots with stop losses at 50 pips your risk/trade would be 5% (on the high side for money management). Now if you had 50,000 in your account you would be at 1% risk which is much more comfortable.

This money management in limitting your risk also limits your profit/pip so that you can either make alot of pips or less pips, but using the same risk/trade you will make the same amount of profit per trade regardless of the number of pips.

Is this correct??

Thanks Again