Many day traders have a hard time extracting some dependable profit since consistency in gains has been an issue with them in the fluctuating nature of the forex market. What is needed is to set out some daily target and have a well-structured plan when making this 20-pip mark.
Here is a method to trade the EUR/USD on a 15-minute chart. Good risk management, combined with tools like calculators for a foreign exchange calculation along with moving averages, will allow the trader to make the right decisions to help him realize his daily pip goals.
Below, we give you a step-by-step approach that will ensure you get to secure 20 pips in a day. Discussions regarding risk management, trade setup, and execution have to be present all through the strategy with an aim of making the methods used practical and repeatable for profitable success.
Knowing About the Concept of 20 Pips
The 20 pips per day target is pretty minimal. Even with appropriate lot size changes and risk management, results are pleasant. Conclusion: Consistency is the name of the game. One single dollar 20-pip trade will fund all your daily costs depending on the account size and need.
Configuring Trading Environment
Select the Appropriate Time Frame: A 15-minute chart is ideal for this strategy. This is because it balances noise reduction with actionable signals.
Select the Currency Pair: Focus on EUR/USD. It is one of the most liquid pairs with tight spreads and predictable movements.
Use Indicators: Moving averages are critical in identifying trends and potential entry points. Overlaying these on your chart will help in spotting opportunities.
Risk Management: The Skeleton of Trading
Risk management is the only way to have a long-term trading career. It prevents you from suffering severe losses on account of the 2% risk per trade rule. That means if you have a $10,000 account, you should not risk more than $200 per trade.
Determine Lot Size: Through the use of a forex calculator, you can know what lot size you should take considering how much you want to make based on the size of your account.
Set Stop-Loss and Take-Profit Levels: For example, if your target is at 20 pips, your stop-loss should be placed halfway so that it leaves you with a great risk-to-reward ratio.
Entry Points
Moving average application triggers this:
The shorter MA said to have crossed above a longer MA in the cross above strategy. It would then imply a bull trend. The opposite would indicate a bearish trend that is, the cross below strategy.
Support and Resistance: These levels are respected by price movements. Use trades only when a price bounces off support or breaks through resistance with confirmation.
Market Momentum: Observe the general market mood. A robust bullish or bearish trend boosts your confidence in your trades.
Executing the Market: Getting 20 Pips Daily
Monitoring the Market: First, determine the trend of the day. Use past data to get an idea about the price’s behavior and what it might do.
Wait for Confirmation: Be patient. Trade the market only when your indicators harmonize and your analysis is confirmed by the market.
Trade Your System: Once all these conditions are on board, open your trade with the lot size already determined and then position your stop-loss and take-profit points.
Reviewing and Refining Your Strategy
Tracking Performance: Use a trading journal to track each trade’s details entry and exit points, reasoning, and result.
Adjust Based on Results: Monitor your performance. Look for patterns in your successes and failures to enhance your strategy.
Be an Update Person: the market changes day by day. Keep updated on economic activities and news, which may cause your trading pair.
How to achieve a consistent profitability
So, through a disciplined approach, it is possible to achieve 20 pips within one single day. These things require proper risk management, using technical indicators, and an analytical and patience-based approach to be followed. Remember, hitting the target does not matter so much, but hitting it repeatedly and consistently matters.
