Looking for a way to get more from your trades? Well then this information is for you. Let me ask you, are you the type of trader to get 5 to 10 to a possible 30 pips per trade? Go through your history, is it possible you may be taking less than what you would want.
And what if i told you there was a way to trade less but make more from each trade. Would you be interested?
Well who would not yeah. Let’s look at the numbers, a trader that makes 5 to 10 pips per trade is equivalent to how many trades when it comes to 1 x 100 pip trade. If you answered around 15 to 20 trades would you be spot on. Now, here is the cruncher. How many trades do you do a week? If you answered around 10 to 15 that would be pretty average, so now you are probably thinking if you are trading this way 1 trade is basically equivalent to all these trades in one week. That means that a trader can trade once a week and make more than a trader that trades many times.
And here is another point, the 1 trade trader can what? Trade multiple trades with little to low risk. Why, because they can lock in there trade early and focus on another.
Now, let’s look at why Traders scalp like this, other than inexperience, traders take small pips due to fear and greed, let me tell you these are the biggest enemy in this business and over time it will bite you. A small pip trader will keep trading even if they are buying or selling in a possible neutral zones ( between ranges ). This is a big problem as sooner or later there trades will get trapped and in the most unwanted places on the charts.
I see it often in other traders, buying at h4 and daily highs and selling at h4 and daily lows. This is what i call a painful situation.
Now when it comes to the 100 pip plus per trade trader they can wait and be patient and then execute there trade, walk away and then check there trade later. It is all partly due to a good mindset.
So, How Do They Do It?
This is the answer, well it is not that big a difference really, the difference mainly is waiting for price zones on the higher time frames. Once a trade is executed then you simply place your stops and set you take profit up at the next major support or resistance. Heck, you can even go for more pips in certain markets. The most important aspect though is this, once the trade is in profit of at least 40 pips or more, then I recommend setting the stop loss at break even.
That way, you can now ignore this previous trade and let it go to the first set target without any risk what so ever. As can be seen on the h4 chart examples below the take profit can be adjusted depending on what the next major resistance or support is, however you will see that each of the examples below show easy targets of more than 100 pips per trade after entry.
Plus as a bonus when going for over a 100 pips, if your risk is just 50 pips or less that means that each trade is a good risk reward as well.
So overall, it is about trading less, trading on the higher time frames, using only the major supports and resistances for trading levels and then executing only in these areas if price action looks good there. What makes it simple really is that the only change is you.