Whenever I start teaching someone how to trade the Forex the most common
question they ask is “how much $ can I make each day doing this?”. I always
smile and shake my head once they inevitably ask this question. Everyone
always asks this question (I remember asking this question too when I first
started), and when you start teaching your friends (if you haven’t already)
then you too will get asked this question. Pay attention to how I answer it so
that you too can give your protégés the correct answer.
It is first of all incorrect and inappropriate to state what can be expected in
terms of dollars earned. Dollars (or whatever currency you are accustomed
to) is by no means a relevant measuring unit to make comparisons with. If I
told you that ‘John’ scored $50 today whereas ‘Simon’ scored $500 it would
be understandable that at first glance you would more impressed with Simon’s
results. But hold one, what if I then told you that Simon just scored a single 5
pip scalp trading 10 regular lots, but John made three trades scoring 10 + 17 +
23 pips trading just one mini lot for each. With whom would you now be
more impressed with? Your answer should now be John. He score 10 times
more pips than simple Simon. Pips, as you should now understand, are
absolutely relative (meaning that you can make comparisons) but dollars are
not because dollars are contingent upon how many lots you can afford to
So now here is the answer you are looking for. A conservative scalper should
be able to consistently (and by now from reading my other eBooks you should
understand the significance of the word “consistently”) average 20 to 60 pips a
day (depending on how skillful you are, and how aggressively you trade). For
the following examples we’ll use a realistic 40 pips. (Actually you could do
much better than what I just suggested, but I’d rather you start off with a low
expectation and then let you find what your average is – which could be much
higher.)forex sato
Ok, so how many dollars can this mean to you? Well here is where you write
your own paycheck. forex sato
It all depends on your account size. If using proper equity management
principles all you can afford to trade is one mini lot then if you were to
hypothetically capture 40 pips on average on EUR/USD then you would have
made an impressive forty bucks. Ok, it’s nothing to get excited over but
assuming you kept up that average for a full month (20 trading days) then you
might have captured 800 pips for an $800 profit (surely it sounds better now –
and an 800 pip month is impressive by anyone’s standards).
Continuing the above hypothetical scenario, if you were to trade 5 mini lots
then you’d be averaging $200 daily or $4,000 monthly - - 1 regular lot (equal
to 10 mini lots) would be $400 daily or $8,000 monthly - - 5 regular lots
would be $2,000 daily or $40,000 monthly - - 10 regular lots would be $4,000
daily or $80,000 monthly. You get the idea.
I could seriously answer you that you that you could expect to earn $40 a day
and you’d immediately lose interest (too bad for you because you’d miss a
great opportunity) or I could casually state that you could expect $4,000 a day
which might blow your mind (depending on what your current income level is
– if you are Donald Trump then this chump change would bore you) and
you’d probably start suspecting that I smoke crack (I don’t, it’s just a
derogatory slang expression implying absurdity).
So now do you understand why it is completely pointless to ask how much $
you can be making each day (on average)?
As a beginner assume that you’ll only average 20 pips daily (yes, it’s realistic)
and then calculate your own “paycheck” based on the account size you expect
that you’ll be trading with (applying proper equity management principles).
“Why do you talk about the money you can make earlier in the eBook and on
your website rather than talk about pips?” Simply put, most people wouldn’t
understand the significance of potential pip gains, but they sure can recognize
the meaning of dollar figure examples. Any dollar amounts ever quoted on
my website or in any of my writing is simply a realistic “carrot” to get people
to realize that trading Forex can be a very profitable activity. So stated dollar
amounts (always hypothetical of course) is just so that people who wouldn’t
otherwise understand the opportunity can start realizing that this could
possibly be for them. Let’s face it, everyone, surely including you (and me
too), first gets attracted to Forex for the income possibilities. So when people
initially ask you how much money one can earn trading Forex you can simply
give them some dollar examples to spark their interest, then when you start
teaching them you then explain that the dollars are irrelevant and that only
pips really matter.

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