5 Pips per Day ?!?

[mtandk0614]

Hello Fellow Traders,
I was posed with a questions today that I am having a hard time to answer. Looking for some opinions.

If a person wanted to sit down at their PC at the London Open and trade EUR/USD. Make a +5 pips for the day and just walk away.

This was the "catch" to the question. Looking to do this on a daily basis (when the market is open of course).

-My answer was "Easy..don't chase little runs."
-The reply........"Honestly, Could it be done."

Now, I know it could be done, the market moves a little more than 5 pip per day LOL.

I guess I am asking what suggestions anyone would give to a person who wants to sit down, make 1 or 2 trades, end w/ +5 and be done.

Thanks for the opinions

[mastergunner99]

The only way to guarantee a 5 pip a day would be to implement some type of martingale system. And we all know such things in the long run end up with busted accounts.

When does the person decide to walk away if they can't managed to get 5 pips in one day?

[mtandk0614]

Originally Posted by mastergunner99

The only way to guarantee a 5 pip a day would be to implement some type of martingale system. And we all know such things in the long run end up with busted accounts.

When does the person decide to walk away if they can't managed to get 5 pips in one day?

I totally agree....I dont know when they would walk away, I think this is more of a "could" type of thing rather than an "I am going to" idea....

I was simply courious how more experianced trades would look at and reply to the question.

[tymen1]

5 pips a day is nothing.

With care, this is easy to get.

However, we are working with stop losses, so is your stop loss going to be 2 pips? (to keep the correct risk/reward ratio).

That is impractical.

So we let our trades run when we are in profit. (many pips).
And we set a decent stop loss.

That is the only way to make money consistantly, since hitting the stop loss does occur at times.

The only other way out is too continuously scalp. Then you always close the trade when you are in profit.
But beware of the time when the trade goes against you!!

[LadyPip]

I would agree with Tymen on this one. It just isn't worth it. You will probably be able to easily get 5 pips a day no problem, but depending how much you are risking and where your stop loss is in the long run it just isn't worth it. I like my risk to reward ratio to be around 2 for my winning trades. Thus whatever my stop loss happens to be I set my target to at least double that. With a target of 5 pips and a stop loss of 2 pips, you would find that you would get stopped out quite often as it is extremely easy (and almost likely) that price will move a couple of pips opposite your direction. And when you take into account the spread, 2-3 pips is about the spread of most brokers, you already start out with a loss of 2 pips . So really you can't have price move opposite your trade at all to make the reward to risk worth it.

[Ray_1]

I feel 5 pips profit level is far too low. For me my profit level is at least 10 pips. My stop loss will be set at 10 pips too. So the ratio is at least 1:1.