Who profits in the currency market regularly makes 5 pips a day easily even they make many more of it. But the question is, can newbies also make it? The answer is if they follow some hard and fast rules & have strong money management rules. Many day traders make even 200/300 pips in a single trading day, so why not 5 pips a day?Things needed to generate 5 pips a day
The most important thing a trader must have for gaining consistent profit in this market is keeping away his emotions from the forex market. The next thing he needs is to learn the basics of trading and become accustomed to trading software like mt4,mt5, or c-trader. Thirdly, he needs to develop a winning strategy and consistently follow it. If any experienced traders do these things, they will have no problem generating 5 pips a day or more on average. This was a 5 pips a day review briefly. Now we will go deeper.
5 pips a day forex strategy explained
Basic trading rules/Buy signal: open a buy order when 5 ema crosses 12 ema to the upside, and the rsi indicator crosses above 50 levels.
Stop loss: set your stop loss below the previous candle, which closed before two ema crossover happened.
Take profit: your profit target should be 5 pips.
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Basic trading rules/Sell signal: open a sell order when 5 ema crosses 12 ema to the downside, and the rsi indicator crosses below 50 levels.
Stop loss: set your stop loss above the previous candle, which closed before two ema crossover happened.
Take profit: your profit target should be 5 pips.
Advantages of the 5 pips a day forex trading strategy
This strategy is so simple that even a beginner can apply this powerful forex trading system and make handsome money from trading. If you are a trend lover trader, then this one is a piece of cake for you. With this strategy, you can easily achieve many pips a day, like 50/60 pips, but when you target just 5 pips a day, then your target will be hit without any doubt. If you have any confusion, just search “5 pips a day myfxbook “ and you will find many strategies to make consistent profit developed on this system.
Disadvantages of the 5 pips a day trading strategy
As I mentioned above, that 5 pips a day strategy is trendy, so it won’t work well on the choppy or ranging market. If you trade on such currency pairs like GBP/NZD or NZD/CAD, then these minor pair’s spread will block you from making a profit. Rather if you stick to only a few pairs that have a low spread like EUR/USD or USD/JPY, then chances are higher that you will make a profit. If you have a habit of overtrading, then this strategy is not for you. In this strategy, you will notice many trades here and there. But it would be best if you were very picky when picking any trades.
Don’t trade all day long. Rather trade only active trading sessions like London and us overlap sessions. Don’t invest your real money. First practice in demo trading. One last thing is that if you are a position trader, then these scalping strategies will not suit you. Ask yourself: Is 5 pips a day good? Or Is 10 pips a day good? How much can you make with 10 pips? or 5 pips? If the answer is “no”, “not enough”, then skip this strategy and go for many other swing trading strategies discussed on parkingpips
5 pips a day forex robot review
There are many robots there. But this one is a really proven one. However, you can make money trading with a robot, but I personally don’t suggest you trade with any forex trading software as many times a robot will blow your account. Still, I am giving away 5 pips a day ea free download. You can scalp through this one as this one is a forex best ea scalping robot.
I stated above that I don’t trade with ea, and I don’t suggest it, but many periods of time, many forex beginner traders write to me to tell me about many ea’s. And here is my brief forex trading with robots reviews. Many scalpers also search for a 2 pip forex strategy. You scalpers can use this ea to get 2 pips also.
How many pips is a day good?
Major forex currency pairs move around 80–90 pips per day on average. However, as a retail trader, it is not impossible to get 80–90 pips every day. Though there are some strategies like 100 pips a day online, it isn’t easy to make 80–90 pips every day. So try to target 40–50 pips in a single day.
When we multiply one pip ( 0.0001) by the contract size, we get the value of a pip. for mini lots, this is 10,000 units of contracts, and for standard lots, this is 100,000 units of contracts. For example, if we look at GBP/USD, then one pip movement in a standard contract will be equal to 100,000*0.0001= 10$
Some more strategies like 5 pips a day strategy for 2024
David Roads is a full-time trader. His trading style is based mostly on swing trading and Day trading. He’s the Chief Analyst of parkingpips & contributor to numerous finance journals. David Roads has 15 years of experience working with hedge funds, banks & investing companies. He has a Prestigious Chartered Financial Analyst (CFA) degree and worked as a financial advisor and investment analyst before escaping the “rat race” to focus on trading full-time. David Roads has Deep expertise in news events, market reactions, macro trends, economic themes & price action.
