How to gain $20 a day from 40 pips

Forex Trading Nigeria

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Posted by on Tuesday October 30, 2012 16:17:25:

Assuming you want to achieve a target of @20 everyday from just gaining 40 pips, then you would need to choose a right strategy that works for you.

In this report, I want to share with you on how you can trade a currency pair like the EURUSD for just 40 pips daily from a single trade.

We are not going to use any indicators or try to follow the market but rather base our strategy on the fact that the currency pairs moves between 50 to 80 pips daily and we are going to try to enter just before the London market opens.

So early entry and early exit while setting a modest target it our goal in this game.

Currency pair: EUR/USD
Target: 40 pips i.e. 0.0040
Entry time: 6 am Nigerian time
Capital requirement: $1000
Stop loss: 40 pips i.e. 0.0040
Risk:Reward = 1:1

So assuming we choose to trade for 26 working days in a month and lose everyday which is unlikely with our buy low sell high goal, we would lose $20*26 = $520 in total at most. That is still very unlikely but if we win for about 20 days out of that 26 days, we would have a net gain of $(20*20) -$(6*20) = $280. That would be a profitable month.

Making an entry
So let's say that you've been monitoring the charts pre-london time to see the lowest entry you can get on the Eur/usd and then make a buy entry by around 6 am Nigerian time, you should immediately set your target exits and stop loss at 40 pips each.

Let's say entry is at 1.3000
Target exit would be 1.3040
Stop loss should be 1.2960

Let the trade run till it closes on its own and the next day you make another single entry.
Try it for 26 trading days in a month and see if you are making any gain.

Hope it works?