What Is a PIP ?
You know what a pip is already. For purposes of this article,
we’re drawing it as a yellow cube. Do you know that most forex traders spend their careers chasing after pips.
Have you ever watched the market and wondered why the harder you tried, the more quickly the pips distanced themselves from you? I remember when I first started trading that the market would move away from me and I would begin to think: it’s moving.
Why is it moving away from me? Couldn’t it just as easily move in my direction? For a while, I made money on gut decisions. I’d make some progress, a few pips or more a day, but never really understand the signals. For instance, I’d make a profit just barely, and watch in horror /relief as the market swung the opposite way right after I exited the trade. Or I’d enter a trade, lose a bunch of pips, and then exit the position at a loss – only to watch the market swing back in my favor.
Only, of course, the position was closed and all I could do was sit there and watch.
Until you’re no longer impressed with pips – no longer frightened by them, nor infatuated by them, not in love with them, no longer simply hating them – they won’t give you the time of day. The acquisition of pips is your only goal in the currency market.But pips are fickle and if you pursue them full of emotion, you’re going to get burned. You must be able to calmly make a plan, stick to it. But I could do none of those things.
My emotions took hold of me and turned me into an idiot.
It’s the same for pips. We all want them. We all want as many of them as we can get. But some of us are willing to risk everything for just a few of them. We’ll chase after them like a 12-year old boy. And you know what? They don’t give a damn about you and me.
This strategy will present a plan for learning about pips, where they’re going, what they’re about to do, and then arm you with a strategy that once implemented, can take a lot of the emotion out of trading.
Your goal will be to:
1. Enter positions as soon as a particular signal is given.
2. Exit the position as soon as a particular signal is given.
The payoff will be:
1. The emotion should be gone from the trading. You will enter and exit trades with discipline and focus.
2. You’ll get about 20 pips on the good trades. There will be many more good trades than bad ones.
Attitude is 99% of Trading
Developing the right attitude about your trading is most of the work. Once you get your attitude (your discipline) under control, you’re going to have more pips than you know what to do with.
So much has been written about this that you’d think that you’ve already heard enough about it. I’ve written about it elsewhere, too1, but I’ve got to stress that no technique or strategy is worth more than the discipline you have to implement it.
The 5/13/62 strategy requires discipline. This is the most powerful personal characteristic you can acquire. Period. It will earn you more money and success than any other attitude or personality trait. If you’re low on discipline, please take the time to consider what I’m saying:
In trading, discipline simply means two things:
1. Enter a position as soon as a particular signal is given.
2. Exit the position as soon as a particular signal is given.
If you do not acquire discipline, this system will not work for you. No trading system will work for you. But this isn’t a book about discipline. In fact, this book assumes that you have discipline, or you’re willing to acquire in order to implement a profitable trading system.
So, for the purpose of this discussion, and for the testing of this strategy, please be disciplined – even as you practice.
[Why ForexGen]
1. Lowest spreads in the market with 0-1 pips in 10 pairs, no commissions, no swaps and instant account Activation.
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3. ForexGen offers Forex trading in the major currency pairs and crosses.
4. Low capital start, with $250 as a minimum account size.
5. Liquidity and 24/5 availability are the characteristic factors of the Forex market compared with other financial markets.
6. ForexGen offers a free trial Forex [demo account] that allows you to test your skills and practice without risking real money.
We consider every client as a special case, a VIP and a partner. A client's profit is our success and a client's loss is a significant call of action for us. Customer care is the heart of our business, we know every client on personal bases as we provide 24/7 customer support.
We keep contact with our clients to ensure that we are on the right track. Leading our client relationship to success is our focus.
Let [ForexGen] prove to you that you have taken the right step by choosing our partnership.
