Thread: Pips vs. Percentages

You didn't miss anything. You are 100% correct, in it is all about percentages. Don't expect too much from any forum. Mostly gamblers here. Stick with your instincts. Stay green...

Originally Posted by ;

i have a question . . Somehow the planet is quite crazy about gaining pips at which the more are the better . . Yes yes I do understand al . . But isn't the gained percentage alot more important since the range covered by doing so ? Yes of course . . The more pips you receive // the better trader you are . . That is got by me . . But on a plain financial standpoint: if a single risk on each transaction the exact same quantity of the equidity a winning 10 pip exchange is going to have almost the exact same reward than a winning 100 pip commerce or do miss somethings there ?

Originally Posted by ;

i have a question . . Somehow the planet is very crazy about gaining pips at which the longer are the greater . . Yes yes I do understand al . . However, isn't the gained percentage alot more important as the range covered by doing this ? No matter course . . The more pips you get // the greater trader you're . . I do get that . . But on a plain financial standpoint: if one risk on each transaction the exact same amount of this equidity a winning 10 pip exchange will have almost the exact same reward compared to a winning 100 pip trade or do I miss somethings there ?

Yeah you are right. Occasionally I browse dudes here who say won the following 1000 pips... who gives a rat's butt? What exactly does it matter if you risked 1000 to it and waited for weeks on end to have a measily 1R:R? Ok profit is great but one other component that is important: time. That is an advantage you keep losing rather than gets replenished so don't bother getting one million pips, get one million per cent gain (ok not sensible but you know what I mean).

Don't focus too much on those typical truths of trading however, (95% of traders neglect, pips instead of money, stoploss/no stoploss, technical or fundamental, blablabla...) it'll divert you towards a dead end. Attempt to look for great advice and persue that. Much more valuable way to spend your time and make a penny too. There are a few gold nuggets to be found, even on this forum.

Originally Posted by ;

i have a question . . Somehow the world is quite crazy about gaining pips at which the longer are the better . . Yes I do understand al . . However, isn't the gained percent alot more important as the range covered by doing so ? No matter course . . The more pips you get // the better trader you are . . That is got by me . . However on a plain financial standpoint: if one risk on every trade exactly the same quantity of the equidity a winning 10 pip trade will have almost the same reward than a winning 100 pip trade or do I miss somethings there ?

I moved to Harrods recently, I can guarantee you that they neither take pips nor percentages. Cash that was real was demanded by them. The same is true to your regional Aston Martin or even Mercedes AMG seller - it really is a strange universe. Rumour has it that Neapolitan tailors prefer cash over favours ...

Joke apart: I don't think the amount of pips will probably say anything about your quality as a trader. Many newbie traders however believe they need more pips since they're lacking equity. While that's actually an extremely flawed logic it likely explains why so many men and women are totally crazy for pips - and are vulnerable for follies like news trading, illiquid pairs and so on. A lot of men and women will not attain a high percentage since they lack the abilities to trade with good(er) precision.

Originally Posted by ;

Yeah you are right. Occasionally I read dudes here who say won another 1000 pips... who gives a rat's ass? What does it matter if you risked 1000 to it waited for weeks on end to have a measily 1R:R? Okay profit is great but another component that is important: timing.

Thats my point . .

If I risk on each transaction exactly the same sum in Percentages . . The sole advantage I do get is that the time as the payoff is supposed to be the same anyway.

additionally . . A beginner trader like me without ivory spoons in the drawer.
Can't even exchange on a big timescale since the equidity not allows a swing commerce with a 200pip stoploss (I believe that is the reason why most fail)

I had about 3k on my account yesterday, ripped 14 percent but I traveled only 122 Pips to do this (split over two pairs, therefore statistical its like 60).

Yeah yeah I know . . Scalping in considered evil and whatnot . . but come on . .
In reality most of us do just scalp a bit of the market . . Makes no distinct what aproach we choose.

Simply because my ordinary commerce time is 20 minutes and I create the broker a shitload of $$ in commissions leaves me a second course trader ?
I actually dont know the idiology behind all that. Sorry I receive off-topic

time would be the main component that is quite true . .
In matters of risk . . I couldn't afford to exchange H4 anyway since my equidity is far too low to do so.
Certain size blah blah . . But hey . . If I could make 80$ travel 7pip . . Why should I wait a week to get a setup another week to implement a manner of 200 to create the same 80$ ... that just makes no sense to me

ok while iam writing this I just made a fast commerce again with my customary 1.5-2 percent risk . . 1:1,2 ratio . .
I got the 80 bucks . . And iam still composing here

but minus commissions and spread its just 59$ in the pocket . . That stresses the risk reward ratio dramatically.
So because potential I guess a longer spanning commerce has a few advantages.

But frankly I simply not feel quite confident exposing the cash for overly long time into the market.
That's sure largely based on my lack of experience and confidence in the markets.

Also while the cash is exposed I'm blocked to take other trades since I always risk everything in 1 commerce (the full 2% (or less centered on the way the chart looks like))
and generally not proceed the stoploss.

Originally Posted by ;

Many newbie traders nevertheless believe they need more pips since they are lacking equity.

Thats my train of thought too . . More pips demand generally more risk (pips) and pips cost cash specially if they're blood-red exhibited

I use cTrader . . The order display does provide me . . Therefore I can ajust the lot dimensions according to my MM rules . .
so while trading . . I dont care about all that . .

I see that the installation . . Check the SL range based on my egy . . type it . . And then ajust the lot dimensions.
Thats the work I do . . Along with the payment is simply if the take profit is struck.

But I usually receive responses to that like you're not a trader . . A scalper. Blah blah and so on.

I read here somewhere that a trader's job is Three easy items:-

1) Enter trade based on your MM
2) Set SL and TP
3) Exit trade

That's how easy it's actually but it's very difficult to do in reality.

1) Wash
2) Rinse
3) Repeat

I am currently at the green of about 250 pips since I started reside trading but my yield is 2.1% in the red.

Which do you like?

Originally Posted by ;

I'm currently in the green of roughly 250 pips since I began live trading but my return is 2.1 percent in the red. Which do you prefer?

I take the -2.7% . .

As 1 commerce can boil out that . . And as stated above, the Austin Martin store not accept pips

No, you are not missing anything! It's about percent really, but unfortunately I see many traders want to create here unrealistic profit, even they need more than 100% monthly percent! Making 100 pips by 10 trade positions is not same to create 100 pips in one trade place! By the way, yes I use same trading lot size within my live trading!

Pips are such as coins. When I give you 10 and you also give me 2 it states nothing about how much money was lost or made.
I might have given you 10 cents and you might have given me 50 cents meaning I finish the day with negative 8 coins but earn money.
Or... I might have been given 2 cents and given away a dollar in dimes. Pips lost or gain a day has nothing to do with if a egy is more profitable.
You'll be able to profit pips and eliminate money. It's possible to lose pips and gain cash. Pips are a price change nothing longer. It tells you nothing of this lot size of this transaction. It is the combination of lot dimensions and pips that provides you the legitimate results of the trade. Pips with outside lot size is moot. But a very good means to lure suckers to buying a system.