50 pips a day Currency exchange strategy has been developed as a day trading strategy for one-hour timeframes to profit from approximately half of a currency pair's intraday volatility.
This strategy, however, only works with a limited number of currency pairs. The major currency pairs, such as GBP/USD and EUR/USD, are ideal for this strategy.Main Rules Of The 50 Pips Strategy
The 50 pips a day Forex strategy is most likely the most straightforward strategy available. And to put it into action, you only need to take a few simple steps, which are as follows:
Your maximum profit per trade is 50 pips. Although this tactic is straightforward, it is not the most profitable. Numerous other strategies can help you increase your profits, but they are more complex than this one.
The fundamentals of the 50 pips strategy. The 50 pips a day Forex strategy is most likely the simplest. And to put it into action, you only need to take a few simple steps, which are as follows:
1. On your chart, place a 1-hour candlestick at 7 a.m. GMT. This timezone is ideal for capitalizing on daily movement with this strategy.
2. You should place two opposing pending orders when the 7 a.m. GMT 1-hour candlestick expires. The first pending order is a buy stop order two pip above the high, and the second is a sell stop order two pip below the low.
3. The currency pair's price will move towards one of the orders, activating it. While executing one of the orders, the other must be canceled.
4. A stop-loss order for a buy order should be placed approximately 5-10 pips below the low of the 7 a.m. GMT candlestick. A prevent order for a market sell should be roughly 5-10 pips above the 7 a.m. GMT candlestick high.
5. Place a 50-pip take-benefit request.
When the resource's cost arrives at the stop-misfortune request or more grounded position request, the position would be naturally shut.
If you follow Forex media companies such as Fastbull
, you'll know that the cost may not arrive at any of these orders before the day's over, and you'll need to choose whether to close it or keep it open for a more drawn-out timeframe.
The Risk Management In The 50 Pips Forex Strategy
Albeit the 50 pips per day Forex strategy is easy to carry out and typically brings about benefits for traders who use it, it can likewise bring about misfortunes.
Accordingly, traders shouldn't endanger cash they can't bear to lose. A few traders might be enticed to utilize strong influence to build their benefits.
They ought to know that influence is a two-sided deal that can amplify the two benefits and misfortunes.
Assuming that your intermediary empowers you to utilize a following stop-misfortune request, you ought to do as such.
The advantage of a following stop-misfortune request is that when the cost of the speculation moves in support of yourself, the stop-misfortune moves with it.
It permits you to shield your income while limiting your misfortunes. When the cost ascends against you, it stays steady, all things being equal.Are 50 Pips A Day Strategy Good For Me?
The 50 pips per day forex strategy is an incredible choice for traders who need to acquire a decent benefit with the most negligible association.
You should open two restricting future orders, select a stop misfortune, and take the benefit request for the request that is executed, then drop the other one.
Assuming that sounds energizing to you along these lines, you ought to attempt it. Besides, stay away from the following trading myths.50 Pips Per Day Forex Strategy - Where To Find Out More
Assuming you are fascinated by this Forex strategy and might want to look into it, you have the chance to do it by perusing a book that makes sense of this strategy inside and out.
The book is 50 Pips A Day Forex Strategy, composed by Laurentiu Damir. Laurentiu Damir is a Forex trader with 14 years of trading experience that began collecting digital trading books in 2012.
He has composed various trading digital books from that point forward, yet the 50 Pips A Day Forex Strategy is the best one, having a four-star rating on Amazon.
In this digital book, the writer clears up the way of thinking behind this strategy and how to increment the likelihood of creating gains while utilizing it.
You can peruse this book for nothing by downloading it from Amazon or different spots on the web. You can download it as a digital book or get it as a softcover.
To conclude, this strategy is straightforward and usually very effective, it does not guarantee that you will always make 50 pips profit with it, so use caution.
To reduce risks, you should be cautious when setting stop losses for your trades and, if possible, use a trailing stop loss. Also, avoid using a lot of leverage.
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