Pips or CASH?

What is pips?

For those who are clueless about forex, pips is the points earn in forex. Why it is so important to earn hundred or even thousand pips?

I could earn 1000 usd in 1000pips, i also can earn the same amount with 10pips, then why not 10pips instead of 1000pips which is not easy to achieve. Earn 10pips will take seconds, losing 10pips will also take a few second. Lesser pips you target for, the more risk you are expose to.

In order to manage your risk, your stop lost must be large.
There are 3 types of trading.
- long term (days, weeks and more)
- middle term (hours, maybe day)
- short term (seconds, minutes)

Personally i regard short term as gambling, and yes i do use short term trading.
Short term trading are trades to do with economic reports, US Non farm payroll, interest rate decision.. many more.
It is a good way to jack up quick cash, but honestly the risk is high. Very vulnerable to spike data (recently alot of speculation spike). I actually suffer alot doing this. You need very strong trading psychology, as you will just lose 5% of your capital in a few second, which took you a few day to earn in long term trade. Those who are not strong willed enough will result in "REVENGE" trading.
I advise start small in short term trading, once you got the hang of it then start increasing your lot size.

As for middle and long terms, those trades will be aiming for hundred and thousand of pips.
The strategy used are normally Trend trading and Resistance Support.

If you are a investor and you want to be successful, first you must be able to achieve a consistent earning pips, then you think about earning the real cash.