Here is a simple plan I started working on for pip growth.  I personally believe that this is conservative and doable for a lot of folks. But, if you think its to aggressive, feel free to scale it back to something that makes you comfortable. I chose a small account starting size of just $10K and  a small trade size. Just ONE mini lot. Each week we hit our profit target of pips we get to move up to the next level.

Starting with a 10K account and trading just one   “mini Lot” our goal is to make:

50 pips on a Monday, and 50 on a Friday and 100 pips on a Tues- Thursday basis. This should equate to 400 pips or $400.  Should we achieve this $400 “delta” we get to go to level 2

Account balance goes to $10,400

Let us say that on week 2 we make the same pips but its now $800 (because we have moved up to 2 minis)

Account balance goes to $11,200

Using this continuous pattern ALWAYS searching for just 400 pips in a whole wide week. Some weeks we may make much more, other weeks less but on AVERAGE 400 pips a week and increasing the size we should eventually get UP.

Week 3 3 “minis” Profits $1200  Account balance  $12,400

Week 4  4 “minis” Profits $1600  Account balance $14,000

Week 5  5 “minis” Profits $2000  Account balance $16,000

Week 6  6 “minis”  Profits $2400  Account balance $18,400

And so on………

Week 7 Profits $2800  Balance:  $21,200

Week 8 Profits $3200  Balance:  $24,400

Week 9 Profits $3600  Balance:  $28,000

Week 10 Profits $4000  Balance   $32,000

Week  11 Profits $4400  Balance  $36,600

Week 12 Profits $4,800  Balance  $41,400

Week 13 Profits $5,200  Balance  $46,600

Week 14  Profits $5,600  Balance  $52,200

Week 15 Profits $6,000  Balance  $58,200

Week 16 Profits $6,400  Balance  $64,600

Week 17 Profits $6,800  Balance  $71,400

Week 18 Profits $7,200  Balance $78,600

Week 19 Profits $7,600  Balance $86,200

Week 20 Profits $8,000  Balance $94,200

Now, I will assume that there has been some “Plateau” effect. And that you had a few weeks scattered in here and there where you did NOT make it UP to the next level. Lets throw in 6 weeks, OK?  Let us say it took you 6 whole weeks and we can stop the Balance growing effect too. Lets say you never quite make it to 400 pips and it took you 26 weeks to get this 94 grand.   That is a half a year to go from 10K to almost 100K.

Lets carry it even further and say that your just getting uncomfortable going above  the 2 lots. Let us say that it took you 26 weeks to slowly move up a mini lot at a time and now your at 2 full lots and that is enough for you. Lets say you decide to NEVER go above this level and your simply going to trade 2 lots forever. Weeks 26 through 50.…. We add in 24 more weeks and we CAP your earnings at $8k a week for the rest of the year.

24 weeks x $8,000 = $192K MORE.  We add this to the $94,200 and come up with a total of  $286,200.

Can you do this?  Can you believe in this?  Is it really hard to make 100 pips a day? And 50 on a slow day?  If this is something you cannot believe in. CHOOSE a number you can believe in. CHOOSE a way to “Move up the ladder” according to YOUR rules.

Slow. Sure. Steady. Keep it going.  Make a plan and stick to your plan.  J

This is a great video to get started to begin your weekly studying to get prepared for trading in the week ahead. Follow Michael on Twitter to get his updates through out the week. Also make sure your are monitoring the channel #FxPG so that you can get all of the trade updates live throughout the day.

This only helped to add fuel to the fire. These shorts had to cover and cover quickly when the breakout came.  As many of my roomies know, I took a “hit” today on this pair.   Its not easy, but when this happens, we just have to hit the “delete” button and go on. It looked like a great trade, and thankfully I had a sensible stop so it wasn’t to bad.  How bad? Well, a week should recover it.  These things do happen. Stuff like this reminds me of how much I like scalping. LOL.  Going after the big kill is always fun, but, the stops can hurt too.  So, anyway…. Always remember to look at a trade from Both sides, if you can. Someone is always taking the other side of your trade.  A great trader once said to look at where the greatest danger lies.  In this case the greatest danger lay in wait to the upside. Whenever we see a short squeeze like this (and believe me it has a certain feel to it), we should really get on board.  Another trader in the room today was more “in tune” than I was. He actually recommended this as a long. But I failed to see it, even when it was happening before my eyes.  Can I blame it on being sick?  (I caught a cold)…. No, not really.  It simply got away from me and I did not get long.  Another great trader said that he made the most money when he was in a position, realized he was wrong, got out and doubled up in the other direction!  Good advice!  Lets try and keep a handle on that one.  Anyway.  If you ever get “lost” in a trade, simply killing the trade has an amazing ability to clear your thinking up quite a bit.  Good luck and happy trading all. Till next time. RobinHood.

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As usual keep your position size in check if you decide to take it and I am placing my stops right above the highs and above the daily 200 MA, just above the “psych” level of  1.6215  Thanks for reading and till next time, Happy trading.  Michael Storm aka robinhood.

Click the chart to open and can you see why I would really like price to rise toward the 1.5350 area? its a psych level and a prior hourly pivot and take a look at this 15 min chart. It happens to be the 200 MA stop point on the 15 min chart.  A nice area to short indeed. PROVIDED that I get a sell signal in that neighborhood. Here is the 15 min chart:

So as I am writing this… I have a few moments before I potentially take this trade. SO, I would like to say number one… forgive the ‘sloppiness’ of this article, Casey has gone away for a bit, and I stink at wordpress.  (LOL)  Number 2 you must exercise some PATIENCE. and learn to WAIT.  You must also be careful to not let a scalp hurt you by going to far against you. If your just looking for a quick 10 to 20 pips, don’t let it run35 pips against you, OK.  Time is getting short here. I got 10 minutes to go. Doesn’t look like its going to make it to my level…. waiting for a sell bar on a one minute or a 5 min chart. Will capture the screenshot as soon as I take it.

Ok, Price hit the declining 40 ma on the 15 min and put in this one minute sell and I entered right here on this signal.   I am looking at the 15 min chart and analyzing the bars and the potential. Look at the 15 min chart and you can see the 20 Ma is right near the whole figure of 1.5300 so this area will be my target and I will close it there if I can. I will probably get a nano second to exit. This also happens to be the 200 ma on the one minute chart. so my target is about 11 pips or so should I get lucky on it but do not mind if I go out for just 7 or 9 pips. Its ok lets see what happens….

Ok, here we are a few minutes later and the price followed to where I wanted and I captured this shot:

Then I immediately hit the button. So, we have a picture of a scalp trade. The entire time for this was not that long. 25 minutes was the total to watch, wait, execute and get paid.  Do this 10 times a day is your mission. When you are really good, you will be able to do this 50 times a day.  It just takes you being relaxed, patient, focused and disciplined. Hope this was a help to some. Thanks for taking the time to read and until next time, Happy trading. Michael Storm.

Take a look at ANY currency pair and study the hourly charts and you will see these oscillations of up and down. Its just too easy to see.  How many times do we have to look at it?  How many days of trading have to go by before we see this simple fact?  Looking at euphoria in times past…. ask yourself what were traders thinking as price was spiking to the moon?  Some were elated.  They were dumping positions and getting rich on the spike.  Some were fearful, for they were short and were getting squeezed and having to cover at higher prices as they got hurt.  Some were too afraid to short, or to start shorting because “its going to the moon”.  What can we see hours later?  What can we see perhaps 24 hours later?  Price has completely reversed and gone down considerably.  Happens all the time.

Look at this one hour chart below of the usd yen and see that this is just one example, I could give endless examples of this:

We can see the price on the left of the chart is too far from the MA’s. We were at a moment of yen weakness. It doesn’t last. Hours pass. We are now at a point of rapidly gaining yen strength, and price is getting very extended to the downside. We hit a 50% fib level of the last 2 day run.  We hit a 200 MA on the hourly. We hit a psych level (88.00)  What happens next?  Time goes by…. we are back into yen weakness and price has memory. We can see traders drove the price right back towards the top. just a few pips away from recent highs. Price is once again extended way to far from the MA’s and another sell off ensues.  The end result? well, HOURS later we break support, race right back down to the support level of 87 and attack it again.  This time it DOES NOT hold and we race towards the next figure (86.00)

So, my point is this… take an hour or 2 and study some charts either hourly or 15 min. and notice how often price gets into the 2 places:  Euphoria, or “panic selling”.  Look at the chart “signs” that price is exhausted. Notice the signals of reversal. What should we do when we are presented with these opportunities?  In my opinion, I need to look for places to buy when prices are way to cheap, and wait for the market to oscillate to the other side. Sometimes this can take hours, sometimes days.  In my opinion, I need to look for insane price spikes and build positions short and wait until the euphoria is over and price comes back down to earth.  DO remember that there are times we can guess wrong and price goes higher. So never do this with size that is beyond your means of handling. It should always be done in accordance of what you can comfortably handle so that you don’t get hurt.  This is an important key.  I always do this in small sizes so that if price continues, I can build in and get a better average price.   Thanks for reading and till next time happy trading.   Michael Storm.