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10 Pip System |
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It has been claimed that if a trader starts with $10,000 on January 1st, and earned 10 pips per day, and only traded 17 days of the month, then that trader would end the year 2,000 pips up, and with about $130,000. If that same trader continues the next year with 10-pips per day, depending on their risk tolerance, they would realize, between $10,000 and $17,000 per month in trading.
The secret of the 10 Pip System is not trying to make a ton of money on each trade, and, more importantly, never trying to get revenge on the market. Instead, the trader should set up good trades, ones with a lot of potential, and then aim at realizing just 10 pips. And once those 10 pips are made, close out trading for the day. By doing so, the trader doesn't lose a lot of money.
The 10 Pip System for trading relies heavily on the following:
1. Technical analysis (a 1/2 hour, 3 hour, daily, weekly, and monthly chart are necessary.)
2. Stops and Limits.
3. 10-pip goal every day.
4. Discipline.
The 10 Pip System requires traders to dedicate themselves wholeheartedly to learning how to trade intelligently. For example:
1. Buy and sell on breakouts.
2. Don't try to become a millionaire on every trade.
3. Set a 10-pip limit only. Exit the trade at 10. Stops are set based on market conditions, but they always set.
4. Goal: + 10 pips every day.
5. If a trader earns more than 10 pips on a trade because the trade moves so fast in his or her direction, they can set their stop to protect the 10 and then go for more. That way the initial +10 can not be lost.
6. There is no 'makeup' strategy. If the trader takes a loss, then he's still trying to realize a 10 pip gain for the day. The trader may keep trying for his or her 10 pips gain as long as he or she hasn't lost more than 5% of his or her capital. If the trader can't realize 10 pips, they do not attempt to make an additional 10 the next day.
7. The trader should pick a certain amount of time per day to set aside for actively trading. If the trader can't earn their 10 pips during that time, the trader should set their stops and limits and walk away.
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| Symbol |
Rate |
| GBP:CHF |
2.007608 |
| GBP:JPY |
182.222212 |
| GBP:USD |
1.757198 |
| NZD:USD |
0.658397 |
| EUR:CAD |
1.503413 |
| EUR:CHF |
1.557680 |
| EUR:GBP |
0.775889 |
| EUR:JPY |
141.384148 |
| EUR:USD |
1.363390 |
| AUD:JPY |
80.415028 |
| AUD:USD |
0.775455 |
| USD:CAD |
1.102702 |
| USD:CHF |
1.142505 |
| USD:JPY |
103.700427 |
| USD:SEK |
7.185028 |
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