What's a good pip goal per month?

Hello,

I’m new to this forum, and relativly new to the forex, but here is my 2 cents…

My goal set is this…

Double my money every 2 months.
To do this, I need to make approximately 12.5, or 13% of my total balance per week.

With a starting balance of 10k, and trading 25% of that, or 2.5k, here is how it works…

With a mini account, 200:1 leverage and 10k lots I can trade Eur/Usd at approximately 1.3200, buying 37 lots, I need to make 35 PIPS a week. The Eur/Usd has an average weekly pip movement of 239 pips since March of 2004. Even with 100:1 leverage I need roughly double that which still isnt hard as long as you have a fairly accurate trading ststem and you trade smart and practice good money management, risk vs. reward and all that. Well, that is my plan, let me know what you think, I can always use experianced advise!

Thanks

Personally I have a goal of 100 pips a week on EUR vs USD. Which I think will be quite easy to achieve with my method I am using. I do not like to use other people’s successes as a measure of my potential, however, my mentor is returning 5%-10% of his capital a week! (On average, of course we all have our slow weeks)

So all I have to say fellows is dream big and work hard and I am willing to bet your wildest dreams will come true.

I think for a beginner, 100 pips is probably good. Given that most of us have lives outside of Forex :slight_smile:

Which I think will be quite easy to achieve with my method I am using.

Care to share your HOLY GRAIL?:slight_smile:

I follow Kolachi Method; I am a Kolachi Trader!

I think it is important for newbies to find a method that works for them. Kolachi Method just seems to work for me. I think most newbies go through a stage of bouncing from method to method searching for an easy way to make money. Once the realization occurs that it is hard work then you look for things that suit your personality. Kolachi Method happens to suit my personality. I wouldn’t call it a holy grail I would just call it my trading method of choice. I think with due time most if not all methods can be successful. It is just most newbies lack the discipline to follow the rules of a trading method (opps I think I am plagiarising babypips.com :wink:

Anyhow, my point is don’t jump from method to method because of the promise of success, find a method that makes you happy and that you enjoy using and then I am sure success will follow.

Kolachi trader? what the heck is that?

Forexcranium & Blackcotton,

I was looking for an answer myself so I googled it and found it.
this post is originally taken from http://www.fxfisherman.com/forums/forex-metatrader/trading-systems/637-kolachi-method-trading.html

Kolachi Method of Trading


Name: This Method be called as "Kolachi Method"�
Method:Use 1H chart.Use wma5 and ema21.Use MACD or CCI for better understanding.Place 55 ema, 100 ema and 200 ema on your chart.

Signals:when wma5 changes its slope place the entry.Wait for the pull back to ema21.If it crosses through it then be patient and exit on next change of slope.If it is repulsed then exit as soon as possible preferably with some profit.Repeat the process again on change of slope.

Whipsaws: Unlike other crosses this method has very few possiblilites of whipsaws.The reason being the difference in the period of two MAs.Moreover our entry is not the cross itself but the change of slope of wma5.In case of whipsaw you will see the repulsion of wma5 from ema21 but you have already break even or locked few pips.

Axis: wma5/ema21 has an axis of pullback which is 200 ema.It goes to a cetain level away from it and then it is pulled back for obedience till it is allowed to cross otherway to certain extent.

Comments:
1)You will mostly see that wma5 is repulsed from ema21 on the first attemp mostly.
2)On second attempt it will mostly cross and may be stopped by ema55 which is a strong resistance and support in my system.
3)Once price has breached it then it will face ema100 as next level and the last one is ema 200.
4)Once wma5 has crossed an ema it is usually not the routine that it will cross back the same ema unless it has crossed some other higher level prior to that.
5)Tackle repulsion from ema55 carefully bcoz it means price has equal probability to cross it again as emas have habit of rejecting once atleast.

Legal Info:
1)I have used this system with live account and is very successful.I am not convincing anyone to use it.My intent is to share my knowledge and experience.Decisions in Trading are ones own responsibility.sometimes you need your discretion about deciding entry and exit while looking at MACD,CCI, fibo levels etc.But mostly it is systematic.
2)This material is copy righted.Any copy, reproduction,or use must contain the title as "Kolachi Method"�.


I follow Kolachi Method;I am a Kolachi Trader
If you need details visit my website: kolachitrader.net

after posting it, he posted some remarkable weekly profits (around 700 pips a week).
worth checking, I suppose.

ohh, and he also claims to have trades reviews in his site and at forexfactory.com

Thanks soardofrue!
And than you wery much parsush for the details!
Worth of trying out!:cool:

In a 10 week period Kolachi averaged nearly 600 pips a week and almost 5%+ in equality a week. One of the top Kolachi traders has worked his way up to nearly 300 pips a week. It seems very promising and I am going to stick with it and I would be happy just making a fraction of what Mr. Kolachi does in a week.

And good job parsush, I swear, google is the most underutilized tool of the decade ^^;

Well, I’m not sure i’d ever want to attach a hard profit goal to my trading. Although i agree that setting goals are crucial, they do not have to be set in stone. I personally find it a little dangerous to set too many daily, weekly or monthly profit goals. What if the market does not want to offer that to you at any given time? What if you decide to trade for a living and decide you need X amount of profit to live off, then X amount more to give your account potential for growth? Let’s say the total X value is 5% per month. The danger with setting these kinds of goals for yourself is that as the end of the month approaches and you realize you may not achieve it or may not be able to pay your bill unless you make the profit, then you might also start to force your trades. You might mistime your trades, get impatient, start to overtrade, etc, etc…

Don’t get me wrong here folks. We all need to establish some kind of reasonable expectation of profit, otherwise what are we all doing. But those expectations need to be flexible, perhaps a profit range, based on more of an average over an extended period of time, rather than a rigid month-by-month basis.

Since i hold a job and don’t have anywhere near the kind of trading capital that is needed to trade for a living, i don’t stress out over a fixed profit goal. Instead i think it is much more constructive to have a goal of consistency…consistency in following your rules to the letter. If i am profitable at the end of the month, then i am happy…even if it is only 20 pips. The question i ask myself is did i follow my plan, did i trade my plan? Is this distribution of wins to losses this month fit the statistical norm based on backtesting (it is normal from time to time to have sustain 5 losses in a row even with a 65% accurate system)? If i can honestly answer yes then i have achived my goal and i press on. I’m at the point where my goals are more internally directed (discipline, consistency) and not externally directed (set profit targets). I have long come to realize that the second you expect something from the market, that is the very moment the market will bite you in the ass and discourage you from following an otherwise completely sound approach to trading.

I think you make some excellent points pipbull. We all have our own personalities and specific goals work for our particular personalities. Personally I think consistency is a good goal to have but I need more. I thrive more when I have fixed goals, when I have a quota to meet I work harder. Usually adds unnecessary pressure and stress, but usually that pressure works out to my advantage. So really it is just a matter of having goals that fit your personality.

You make valid points and I just want to point out that goal setting is a personal decision that we all have to make. All I am saying is that a 400 pips a month on EURvsUSD is a good goal for me that will push me to the next level and that will raise me up and above my expectations. However, that should not effect anyone else’s goal setting.

:o Well well I thought FOREX could get much more than 10% consistantly i a month.I am earning 10 - 30 % montly currently for fix period of 15 months.
I expected to earn 200usd a day on forex. Can I pls comment N advise.

My only goal is to win more than I lose :slight_smile:

A good modest goal that we should all have! Personally I take it one step further and say, I do not want a losing trade! I do this by moving stop loss to +1 pip when the price is 10+spread in my favor.

Please do re read the last chapter of babypips FX school under " Leverage the Killer". If you do use up your laverage money 100%, you will be ‘slaughtered’ pretty soon. Well, not you, -as the teacher said -, but your account will.

I usually move my stop to breakeven when I’m up as much as I risked. The thing that bothers me is that a lot of times the trade reverses and I breakeven instead of taking a modest 15 - 20 pip gain :mad: This is the reason why I am [I][B]considering[/B][/I] scalping those 15pips instead of waiting for the 30-80 pip trade.

Well do you trade multi lots? If so you can cash out some profit and let a few lots run that way if it does reverse back and hit b/e you got something to show for it. But if it does go up to your other target profits then what you know you won’t be kicking yourself because you cashed out at a lower target profit! Just a suggestion, what do you think?

I haven’t done that yet since I am still demo trading but it is definately something I should start doing to see how I do. I have been looking back on my old trades and thinking of ways to improve and that is one of them. I guess would have to split my normal lot size in half to keep the risk the same and when I cashed out one lot I would be trading at half the pip value on the other lot but it’s still better than breakeven like you said.

If you get 10% a month, consistantly. You can set it for a living.
Many traders have net losses, so at least you are winning.

You want to make much more than 10% Resolution is:

  • Increase your initial capital
  • Change your risk reward system (But make sure your system still works for new settings)
  • Or trade bigger lot size ( I do not recommend this. Try not to risk more than 1% of your account in a trade)

You excepted around 200USD a day
Can you tell me what is the initial capital? Try to avoid putting pressure on your lot size to increase profit, this will increase losses.

The valid solution is increasing your capital to increase Profit, given you didn’t change your system rules.