hello baby pips members,

i am very new to forex trading, i am considering the option of adding it as a secondary income. i have started to go through baby pips school, which i feel will give me a good introduction to the subject. i have outlined a plan that i would like to receive your input on.

education:

- complete baby pips school (read twice or thrice)
- read 2-3 books on subject (ed ponsi perhaps? recommendations?)
- practice on demo account for 3-6 months (until breaking even or slight profit)
- open mini account try out strategy for 3-6 months at 1/10th the dollar value (observe profit over meaningful sample size)
- switch to standard account

money management: (figures are for standard account, principles apply for mini account as well)

- start with 10k deposit on standard account
- invest with 100:1 leverage (in essence use 1k for 100k)
- use stop loss limits that are max 10 pips so that never more than 1% of total bankroll (100 dollars) is put at risk, even though a 10% margin is used on all trades.

strategy:

- low variance scalping strategy
- work 5 hours a day (optimal hours based on research and experience) / 5-6 days a week
- try to complete 20 trades a day / around 500 a month (is this feasable when scalping in a 5 hour timespan on 1-3 currency pairs)
- use 1:1, 2:1 or 3:2 type risk/reward ratios
- use 5-10 pip stop-loss and take-profit figures
- focus on technical analysis rather than fundamental analysis
- initially focus on EUR/USB and in time add GBP/USD, and USD/CHF
- use metatrader 4 (thoughts?) on a large and respectable website that openly allows scalping

winning projections:

- aim for 1 pip (10 dollars) profit per trade on average, so after 500 scalping trades a month make 5000k profit

well i sense that this is a naively optimistic plan outline based on only two days of research please provide feedback on these topics.

kind regards,

beyazkus