Can 5 pips a trade = Financial Freedom

If you start with a bank of £150 and capture 5 pips a trade 3 times a day = 15 pips a day at £1 a pip and increase to £2 a pip as your bank grows then to £3 a pip, you get the picture build slow and steady, trade safely. In less than 6 weeks you would be trading at £10 per pip, that’s 15 pips a day @ £10 = £150 per day Tax Free. 15 pips a day is all that you need for financial security why because 15 pits a day can equate to, well you can trade a pip from a £1 to £150 per pip, so you do the maths.
So all we need now is a trading strategy that will give us 5 pips + the spread within a trade. Thats what the charting software I use along with pivot points, support and resistance levels does. There is one unique indicator that is not found on any other charting software that identifies a potential trading candle within a 15 min chart using this with pivot points, support and resistance 5 pips is achievable on most trades. With carefull money management and tight stops I think I can do this, so lets find out.
I will be paper trading for the 1st few weeks, then if all is well I will start trading a £1 per pip.

Wednesday, 14 November 2007

A Candle Is Better Than a Bar Any Day

There are various ways that stock prices are represented on charts.

The most common charts are what are known as:
" line
" bar
" candlestick.

Line charts are what you typically see on the TV or in newspapers. They represent price action by a single line.

They only show the closing prices of the stock and are of little use to traders. Because they do not show what has happened during the day.

Bar charts represent both the open and close prices. In addition, they include the high and low of the day. These four prices are critical for your full analysis of a stock's price action.

Candlestick charts show us all the price information of a bar chart but in a far more graphical and clear way.

The "story' of the stock literally jumps out at you.

When we were first introduced to trading it was with bar charts. However, when we discovered candlesticks a few years back we immediately saw the clarity and detail that they provided.

They may seem a little strange to you at first but do persevere. We can assure you that they are the only sort of chart to use!

In addition, candlestick patterns, particularly reversal patterns are one of our favorite tools in chart analysis. Doji, shooting stars and inverted hammers may sound a bit weird at first but they are some of the best friends a trader can ever have!

Therefore, if you are not familiar with candlestick charts and patterns I would strongly suggest that you learn more, now.

In addition, the VERY BEST explanation of candlesticks [apart from the SMG Tutorials of course!] is Louise Bedford's "The Secret of Candlestick Charting". It is on our booklist in: www.stockmarketgenie.com/resources

The above comments are offered for educational purposes only. We are not providing you with financial advice. We are simply sharing with you what has and has not worked for us personally. If you wish to trade or invest in the stock market, you should obtain advice from a registered licensed advisor.


About The Author:

David Chandler
www.stockmarketgenie.com
For your FREE Stock Market Trading Mini Course:
"What The Wall Street Hot Shots Won't Tell You!" go to: www.stockmarketgenie.com
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