Hi, i’m new to the forex market, i plan on to start day-trading soon on my own. From you guys experience, what can someone trading daily [I]reasonably [/I]expect to make in pips. This is considering i have day trading experience, but not on this market- and not professionally. Is 100 pips per day reasonable? 1% a day?
thanks, dan.
Let me be the first to say “Welcome” dan.
In response to your questions let me remind you of something. 90% of all traders fail and of those that have succeeded many of them have exploded their account 2-3 times. I believe this is mostly because of the mindset that people have when they first start out. Forex is not a way to get rich quick but it is a way to make a lot of money across a span of a few years. If you have experience in trading you may have a head start but forex is still an animial of its own. For a lot of people just breaking even in the first year is a good goal.
Some people will tell you not to open a demo account as it is nothing like a live account. Unless you have extensive experience in trading I would disagree with this. A demo account is a great way to get to know the market and the broker you have chosen. You should demo for at least 6 months and work out your trading plan. Then, when you are comfortable and profitable switch to a live account. It will be different but by demoing you will have a good base to work off of and loose much less money.
Just my 2 pips.
I am also new to 4x and going through babypips.com school. I opened up a practice account, to try some of the material in each “grade”. I was just wondering how a practice account is different from a real account?
100 pips a day is possible, but unlikely as a beginner. Just remember that any pips you make in a day is good; 5, 10, 15, ect… Not losing pips a day is good. I would aim for that first.
A short answer to the post above.
Practice account = imaginary / fake money
Real account = real / your money
difference = emotions
I’m sure that some of the longer standing members could give you a more in depth answer but from my experience there are two major factors.
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A loosing trade is much more frustrating in a real account. It is much easier to get into “revenge” trading where you think “I lost 20 pips, the market MUST reverse and give those back to me so I will enter another trade, increase my lots and make all that back plus some”. That is a recipe for disaster.
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All of the demo accounts that I have tried have had instant execution, no slippage and (I think) lower spreads than their live counterparts. Live accounts usually don’t have a problem in all these areas but may or may not depending on different factors. You will see a lot of people complain about these things but it is reality. Unfortunately no broker is perfect and it will take time for you to find the one that best suits your personality.
Welcome! I would also remind you of the same thing ezTrader did. It’s not an easy road, and I would expect to blow up at least one account. With that said, it can be very rewarding if you’re the type that sticks things out, and really has a desire to be successful. Also, don’t hesitate to seek out good solid training - it is usually far less expensive in the end than trying to learn everything yourself.
Most people would probably say if you do well you can make a couple hundred pips a month. I personally do not focus on the number of pips I make but rather the number of dollars, the % growth, and perhaps most importantly, the consistency of my trading. I might only be averaging 50 pips/month, but if I’m growing my account at 3%/month, that’s 42%/year compounded! It’s all about finding a method that you are able to practice consistently, and then sticking with it.
Best of luck
Once you’re up and running well on your demo, and have learned all sides of Currency Trading (psychological, money management, trading methods, trial and error, etc) anything from 40 - 80 pips a day is good to compound your account. This depends on your individual situation, for example, your trading methods, your account size, lot sizes, how (or if) you compound your account, your risk involved, etc …
I’ve just started live trading and I aim for 40 - 80 pips