In today forex faq, we have a question from one of our fellow traders asking me how he can make 10 pips everyday securely.
Below is the question:
How can I get 10 pips secured every day?
Please advice me about any strategy or indicator to follow.
Frankly speaking, I do not know a way to make 10 pips everyday as all my strategies are not directly in that direction. In fact, there is no way you can make sure that you make profits every single day as there will definitely be times when you will get into a losing trade.
However if you want me to show you a way to make consistent profits every month, I will be able to do it as this is something that I have done before and is still doing.
The key to making consistent profits every month lies in the winning percentage and risk reward ratio of your strategy. As long as you have a strategy that has a winning percentage of at least 65% and a risk reward ratio of at least 1:2. There is no reason why you are unable to make profits in your trading every single month.
Lets take the most recent performance report of my strategy for example.
The break the bands strategy makes 7 winning trades and 3 losing trades for the month of December 2013 which gives it a winning percentage of 70%.
When coupled with a risk reward ratio of 1:2, you can see that I make close to 275 pips profits for that month alone. Even if that month produces 4 winning trades and 6 losing trade, you will be surprised to know that you will still make 50 pips profits when you have more losing trades than winning trades.
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Calculation for the above example
1 Winning Trade makes 50 pips
1 Losing Trade loses 25 pips
Profits = 4 x 50 pips = 200 pips
Loss = 6 x -25 pips = -150 pips
Total Profits = 200 – 150 = 50 pips
That alone shows the importance of risk reward ratio.
So if you want to make constant profits in your trading, risk reward ratio is something that you must take note of when selecting the strategy to learn.
I hope that I have answered your question and do feel free to give your comments below.