>My Goal is to Make 20 Pips a Day (ARTICLE)

You would think something as simple as what I am about to share with you would be widely followed, but you'd be wrong. Even in my own trading this simple concept seems to be beyond comprehension at times.

To survive trading in our beloved forex market, you have to limit your losses to the point they are minor annoyances. And then you have to take more in profits than you give up in losses. Pretty simple concept isn't it.

But why do most traders fail to comprehend this basic truth of trading? Is it all in their heads? Perhaps, but we'll deal with the head case aspect of forex trading in another article.
Right now let’s get to the premise of this article, which is simply this: make it your goal to lock in a 20 pip net gain every day you trade. I know that sounds boring. Its not as sexy as hitting those 100 pip trades. But you are trading to make money not to entertain yourself right?

If not, you are likely to go broke, and sooner than later I’d guess. So lets get into the mindset that this is a Business, and it must eventually make a profit if it is to continue operating.

For starters you should be trading on a mini lot size account, where each trade unit or lot is only 10K. Lets go over the math real quick. First lets discuss leverage, and how to honestly
determine your actual trading leverage. Your brokers most likely tout that you have a 400:1 leverage account. This means nothing to us, other than if you think actually trading at 400:1 leverage is a good idea, you are a fool.

What it does mean is that the required margin deposit per open position is very low. This is a good thing right? Well yes, I suppose so. When it becomes a bad thing is when you decide to start leveraging your trades more than 5:1 per entry.

Remember, leverage magnifies both gains and losses equally. Also remember that the broker is taking the other side of your trade. He wins when you lose. He would love it for you to trade like a fool.

To read the full report: 20 PIPS