The 10 Pips A Day Forex Trading Strategy is a simple forex trading system for beginners and even advanced forex traders.
Must Read:How Fred Made 1 Million Dollars Trading Forex With Only 40 Trades Within 3 Months And You Wouldn’t Believe What Happens Next!
Currency Pairs: only the major pairs
Indicators required: 5 ema and 12 ema and RSI 14 with level 50.
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THE IDEA BEHIND THE 10 PIPS A DAY FOREX STRATEGY AND THE PROBLEMS IT CREATES
What if you can only aim to make 10 pips a day? If you hit 10 pips for the day, that’s it…you are done, no more trading for the day.
Next day, you come and aim for 10 pips again. If you hit your 10 pips profit for the day, you don’t trade anymore.
This means that if you take the first trade and that first trade gives you 10 pips of profit, then you will not trade anymore because the whole aim of this trading system is to make 10 pips a day.
Now, the problem with this system is: what happens if your don’t make 10 pips during the day?
What happens if you have 10 losing trades in a row? Will you keep trading until you hit 10 pips profit for the day?
Well, if that’s the case, you need to make profit on the next 11 trades and it is the 11th trade that will give you the 10 pips you need for the day.
But then, that very thing is a big problem, because now you are confronted with the problem of overtrading and you really don’t know if the next 10 trades will all be winners…
So with this 10 pips a day forex trading strategy, in my opinion, you need to have a set limit on the number of losing trades in a row you can take before you say: “that’s it, no more trading for today.”
TRADING RULES OF THE 10 PIPS A DAY FOREX TRADING STRATEGY
- Sell when 5 cross 12 downside and RSI cross below 50
- place stop loss 2 pips above the high of the previous candlestick which was closed before the ema crossover.
- Take profit target is 10 pips
- Buy when 5ema cross 12ema to the upside and RSI crosses above 50 level.
- place stop loss 2 pips below the low of the previous candlestick which was closed before the ema crossover.
- Take profit target=10pips
DISADVANTAGES OF THE 10 PIPS A DAY FOREX TRADING STRATEGY
- you can’t use the 10 pips a day forex trading strategy on pairs that have huge spreads, you will get stopped out very easily.
- this is a trend trading forex strategy so if the market is flat, you’ll have a lot of false signals therefore I suggest you only use this strategy during the London and New York trading sessions.
- you are only restricting yourself to 10 pips profit per day when sometimes the trade you take, you will see later that it has moved 50 pips or 100 pips but you only got 10 pips profit.
- tendency to over trade if you are keen on getting your 10 pips a day which means you can blow your forex trading account easily if you do that.
ADVANTAGES OF THE 10 PIPS A DAY FOREX TRADING STRATEGY
- Its a pretty simple trading system to use for even beginner forex traders.
- works really well in strong trending markets
- 10 pips profit target is easily achieved compared to something like 50 pips profit target.
“Wide diversification is only required when investors do not understand what they are doing.” – Warren Buffett
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Go to forexfactory.com and under calendar, any thing that has red on it are HIGH impact news. Those are the forex news that move the market.
sorry to bug you again.
just wandering what the best forex news notifications i should be looking? noticed that there’s loads.
Thanks for the info. back to the demo account to test these strategies out 🙂
thanks for the info, might still try this for the time being, until I’m more experienced with forex.
just out of interest which strategy do you use, or does it depend on which pair you are looking at at the time.
I scan all the currency pairs to see what kind of price action trading setups are forming and based on that I pick the right trading system for that particular trading setup.
But ones I tend to use are these:
And chart patterns setups like head and shoulders, symmetrical, ascending and descending triangles, support and resistance, channel trading trading etc.
Have a look at the forex trading signals page:
Those are the kind of trading setups I watch for and hopefully that gives you an idea.
I’ve a beginner in this forex trading lark, and been practising on the demo accounts, but recently tested the water with a small live account, but has more or less lost it.
Just wanting to check how successful you have been with the 10 pip strategy before giving it a test drive.
Congratulations on taking the first step.
As I mentioned here:http://forextradingstrategies4u.com/about/, I do not use all the trading strategies that are available on this site and the 10 pips strategy is one that I do not use.
So why all the strategies on this site? Well, to give forex traders a few options to find whatever trading systems that fits them so they can use them.
If you note also on what I wrote on the disadvantages of the 10 Pips system is the fact that you are really restricting yourself to only 10 pips a day and your risk:reward is not really good.