Sorry for the lack of update for the last and this week as I am just back from a 6 days vacation with my family.
Below is the question by one of the readers of this blog.
Pls how do I draw strategy that can make me a consistent 20-30 pips per day
Pardon me for being frank as there is no strategy that can make you consistent 20 to 30 pips everyday. This is because there is no strategy that is able to give you 100% winning probability as losing is simply part of the game.
However what you should be looking for is a strategy that is able to generate for you a high winning probability of 60 to 70%. With a winning probability of 60 to 70% together with high risk reward ratio, you will be able to generate consistent income every month and this is what professional traders are doing.
One common problem with most new traders is they tend to trade everyday hoping to generate profits every single day. Most of them ended up with more losses than profits as they enter trades that are not according to their plan hoping to fulfill their desire to trade everyday.
For me, there are some days where I do not trade at all as there is no setup that is according to my plan and this is what I usually call discipline.
To answer your question, I will recommend you to trade forex breakout strategy as they are more noticeable and easier to execute.
Here is how you can draw a strategy that fits your trading style
Step 1: Learn the forex breakout strategy
Step 2: Practice it on your demo account
Step 3: Fine tune it by changing the setting of the indicators or adding indicators to help you improve your winning probability
Step 4: Trade consistently with this one strategy alone to verify its effectiveness
Step 5: Continue to fine tune it until you are able to win 60 to 70% of the time
Things to note:
Do not give up on any strategy that you have decided to use simply because of one or two losses. The key to successful trading is persevere and discipline to stick to your trading plan.