somrat4030
Well-known member
Forex Forum is good way for learn more about forex trading.
A pip is an abbreviation for “point in percentage” and represents the smallest unit of change in the value of a currency pair. For most currencies, especially the majors, a pip represents the fourth decimal place in the exchange rate for the two currencies. However, this decimal place can vary for some currency pairs. For currency pairs that involve JPY, a pip is represented by the second decimal place.
How to get more pips in forex trading?
Traders can get more pips in forex trading only if create a trading strategy that relies on historically tested systems that contain precisely defined values for stop loss, target price, and entry position level. Small changes in a trading strategy that show profitability improvement are the perfect way to increase the number of pips and bigger profit. Of course, money management and calculated position size are important criteria for trading success.
How to Calculate Pips
Let’s say you opened a one lot position on the EUR/USD quoted at 1.0909, which means that in order to buy a lot on the EUR/USD at 1.0909, you would need to pay 109,090 USD in return for 100,000 EUR.
Now, as mentioned, the value of the pair rose by 2 pips. We must now translate that into money.
To calculate the value of one pip in our example, you need to divide one pip in decimal form (here 0.0001) by the current exchange rate – the closing one after the 2-pip rise. Then, you need to multiply the result by the notional amount of the trade.
Here are some tips, how you can get more pips in forex:
Step 1: Stop Loss Placement
Adding Pips To Your Stop Level:
A lot of trading systems you see out there use price action to determine stop loss levels. If you are placing a buy trade, you could use the last swing low. If you are placing a sell trade, you could use the last swing high. Then they say, “Add 2-3 pips to the level”.
Step 2: Now traders can test the system in the last 20 years. He can analyze data for the last 20 years and see how the strategy perEntries
Step 3: Trader makes the conclusion that his system gives the best results during the USA session and the worst results during the Asian session.
Step 4: The trader decides to enable strategy only during the USA session and he stops trading during the Asian session.
Step 5: Pending Entries
Most trading systems use Market Orders to get into the market. When your indicators line up, you pull the trigger and enter the market. The feeling is you want to get into the market immediately because if the trade goes your way, you want to start profiting immediately.
A pip is an abbreviation for “point in percentage” and represents the smallest unit of change in the value of a currency pair. For most currencies, especially the majors, a pip represents the fourth decimal place in the exchange rate for the two currencies. However, this decimal place can vary for some currency pairs. For currency pairs that involve JPY, a pip is represented by the second decimal place.
How to get more pips in forex trading?
Traders can get more pips in forex trading only if create a trading strategy that relies on historically tested systems that contain precisely defined values for stop loss, target price, and entry position level. Small changes in a trading strategy that show profitability improvement are the perfect way to increase the number of pips and bigger profit. Of course, money management and calculated position size are important criteria for trading success.
How to Calculate Pips
Let’s say you opened a one lot position on the EUR/USD quoted at 1.0909, which means that in order to buy a lot on the EUR/USD at 1.0909, you would need to pay 109,090 USD in return for 100,000 EUR.
Now, as mentioned, the value of the pair rose by 2 pips. We must now translate that into money.
To calculate the value of one pip in our example, you need to divide one pip in decimal form (here 0.0001) by the current exchange rate – the closing one after the 2-pip rise. Then, you need to multiply the result by the notional amount of the trade.
Here are some tips, how you can get more pips in forex:
Step 1: Stop Loss Placement
Adding Pips To Your Stop Level:
A lot of trading systems you see out there use price action to determine stop loss levels. If you are placing a buy trade, you could use the last swing low. If you are placing a sell trade, you could use the last swing high. Then they say, “Add 2-3 pips to the level”.
Step 2: Now traders can test the system in the last 20 years. He can analyze data for the last 20 years and see how the strategy perEntries
Step 3: Trader makes the conclusion that his system gives the best results during the USA session and the worst results during the Asian session.
Step 4: The trader decides to enable strategy only during the USA session and he stops trading during the Asian session.
Step 5: Pending Entries
Most trading systems use Market Orders to get into the market. When your indicators line up, you pull the trigger and enter the market. The feeling is you want to get into the market immediately because if the trade goes your way, you want to start profiting immediately.
