Do you count your PIPS per day? Do you consider A LOT size Or PIPS amount? Why does the amount of PIPS matter?
Maybe newbie traders think less about pips. But professional traders are more technical. They manage their trading data weekly, monthly and yearly.
For this they need to know; how many Pips do professional traders make? Realistically, a professional trader can make 10 Pips per day. The number of pips per day depends on the skills of the trader and capital. Scalpers make 5 to 10pips, while professionals can go beyond 10 pips depending on market situation and skill level.
Making 100PIPs is impossible in the sense that not every trade is positive. But in demo accounts using different EMAs you can make as many pips as possible.
In a real-money account, greed, risk and fear will stop you from making more pips.
Understanding PIPS in Forex Trading
Before we move on, let’s revise the concept of PIPS in forex trading. The term PIP stands for “Point IN Percentage”.
In forex, it is a measuring unit to define the difference between two currency pairs. It is mainly represented by the 4rth digit after decimal position in quote price.
For example, If the value of EUR/USD rises from 1.1404 to 1.1405, this would be one pip movement or point movement. Now the question may pop up in your mind. ICMarkets is one of the low spread pips brokers in the forex industry.
How many pips should be targeted per day?
The right answer is that it’s an unrealistic approach to target a particular amount of pip per day. There is much to focus on rather than pips number.
However, it depends mainly on your trading strategy, trading type, capital and skills. For scalpers this number is different and for professional traders average pips per day is totally different.
Professional trades keep in mind in mind how many trading days in a year and plan accordingly. Even they take two months vacation usually.
Professional Traders: How Many Pips
Let’s come to the topic that is how many pips do professional traders make? Generally, professional traders don’t rely on a specific number of pips.
This is because it is hard to predict the ever-changing movement of prices in the market. So, traders should not spend energy on targeting PIPs per day.
Though it depends mainly on how you trade. For a professional trader, the rough estimation of the number of PIPs can be 1000 or anything. For scalpers, this number is quite low around 1-50.
Expert traders often recommend “don’t count PIPS’‘. They think that setting goals of pips per day can be the main reason for your failure in forex trading.
Traders should accept that not all trades are the same. Some go to the negative side too. If you try to fix pips number your strategy will go against you. Though it’s good to remain between 5 PIPS to 10 PIPS.
Are 10 PIPS A Day Good
Curious to know can 10 PIPIs a day make you rich quickly? One school of thought believes that 10PIPS a day is ideal for a shorter time frame. But for advanced traders, should go more than 10 PIPS according to the market situation.
If you try to fix this number to 10, you might not get the advantage of the trend in the market fully.
To decide which number of pips is good or not, think about your level of skills. If you are a novice, be careful about other factors like leverage more than pips.
For full-time expert traders with big capital, averaging 10 PIPS per day is a fantastic idea. Trading more than 10PIPD per day requires a lot of discipline and expertise.
If you start with $10,000, and earn 10 pips per day, and only trade 17 days of the month, then you would end the year 2,000 pips UP, and with about $130,000.
If you continue the same practice next year with 10-pips per day, the next year you would be making between $10,000 and $17,000 per month trading. Can you do this?
Are 30 PIPS A Day Good
I would say 30 PIPs a day is an aggressive strategy. Though it is ideal to make a good profit per trade.
Professional traders use the 30PIPS strategy with more volatile pairs like GBP/JPY. The reason might be that volatile currency pairs provide market reversal points
When trading with 30PIPS, take profit and stop-loss levels are far away from entry position. So, volatility is a contributing factor. This factor makes this strategy risky.
The Stop Loss is adjusted at 15 to 20 pips, while Take profit is adjusted at 30 to 40 PIPS with a 1 to 2 ratio. To counter this trader has to consider equity and risk management skills
Are 100 PIPS A Day Possible
Making 100 PIPs a day is impossible. Because it is impossible to make every positive trade a single day. It all depends on your skills. History of trading does not record traders who made every positive pip per day despite an efficient trading plan.
Still, traders who think that they can make 100 pips per day are actually working on a demo account.
The possibility of making 100 PIPS in a demo account with three different EMA is quite higher/. Though it’s all a matter of assumption far from reality. So, don’t believe it!
The forex compounding effect also takes place this time and your account will grow exponentially.
Can You Make 50 PIPS A Day
Yes, it’s possible but under certain conditions. We can’t say that it is 100% possible every time for all traders. Newbies have to face a lot of trouble in making 50PIPIS per day. Below are four scenarios in which making 20-50PIPS is possible:
- It is possible when two different trading sessions overlap such as Japan/London and London/New York Session. Making 10-50 pips is easy when the market opens in the London session
- Making 20-50PIps is easier at the time of crucial financial news release. For instance, Non-farm payrolls make the market highly volatile. Many expert traders get the advantage of these events.
- When there is some speech or news report from a financial advisory or governor of the central bank. The possibility of making 50 pips is riskier at this time. Though many experts get the advantage of these profit-making events
To summarize, a professional trader can move between 5 to 10PIPS per day. But PIPS do not contribute 100% of trading.
There are many things besides this to think about. When a trader tries to make a fairly enough number of picks he falls into the trap of greed. Such a person behaves like a gambler, not a trader. He himself maximizes the risk factor.
That’s why it’s all a matter of skill. A good trader can make 70 pips per day, while a newbie is reluctant to make even 5 PIPS per day. Ever counted PIPS per day? If yes, how many? Don’t forget to share your trading story with us!