Millionaire Traders200 pips a month. Both of the methods are sound, but for short-
term traders who seek instant gratification, Hoosain’s methodology
may actually be more suitable. You can always alter your trading
size. On one standard 100,000 unit lot, 10 pips are worth$100, but
on 10 of those lots, they are worth$1,000 a day. Focusing on the
point potential may be more intelligent than focusing on the dollar
amount.
In order to lock in profits and to increase the probability of
success, Hoosain also uses trailing stops. For example, if his trade
is up by 8 pips and goes back down by 3 pips to positive 5 pips,
Hoosain’s robot will kick in and automatically lock in the profit.
Once again, these singular pips may seem tiny, but we already
know that Hoosain’s conservatism has paid off.
Practice Regular Self ReflectionOne of our favorite pearls of wisdom from Hoosain is his practice of
going back and analyzing his trades. When he first started trading,
there were times when Hoosain would incur a string of losses. In
those cases, he would go back and revisit his trades to see if there
was any pattern to those unsuccessful trades. We practice this as
well. Even when we do not face a string a losses, every week we will
reanalyze our trades to see how we could have improved them. This
may involve things like timing trades differently, perhaps avoiding
trades around certain news releases or tightening up the stops. In
fact, in our trading, we have found that when trades go wrong by
more than 70 pips against us, they will end up in a loss 90 percent
of the time. Therefore, what we learned going forward is to limit
the majority of our stop-losses to 70 pips. When you reanalyze your
own trades, you will find ways to improve your own trading results.