The Forex Pip measures the success or failure of a trade. Learn how to maximize profits (and pips) in Forex trading while minimizing risks.
As you'll soon learn,Guest Posting the Forex pip can be your best friend or worst enemy. We'll start by defining what a Forex Pip is. Then I'll discuss what you can do to maximize pips, and your profits, while simultaneously minimizing your losses.
What Is A Forex Pip?
First things first. What exactly is a pip? Pip stands for "percentage in point" and is the smallest price increment in forex trading. The Japanese Yen is the exception to this rule. Since the major currency pairs are priced up to four decimal places, any change will be reflected at the last decimal place.
The Forex pip can be used to measure gains and losses in currency trading. To better understand this, let's take a look at an example. A currency pair of EUR/USD might be bid at 1.1815 and later offered at 1.1820. This spread is 5 pip. So, if you bought a certain number of Euros at the bid price, and then later sold them for the offered price, your profit would be 5 pips. (Obviously. The amount of money you earn is determined by the amount you spent on currency that you sold and bought.
What The Forex Pip Means To You
Successful Forex trading occurs when you maximize your pips when you trade as much as possible. Thinking long term and logically, to be successful you need to have more pip gains than pip losses in your trading. Let's be honest, it is impossible to win every time. When fxcm markets everything is said and done, what you want is more pip gains than losses.
How to Maximize Pip and Minimize Losses
It is best to purchase currency when it is at its lowest price, then sell it as soon as it reaches its highest value. It is not as easy to do as it sounds. There are numerous and varied factors that determine the rise or fall of currency values. What can you do now?
Many Forex Traders are turning to Automatic Forex Robots to do the trading for them. This is a great way to maximize pips, while keeping the risk in check. These computer programs, or scripts, stay up to date with the Forex market. They trade based on predetermined indicators that are set by professionals. Instead of spending your time on the computer all day every day from Monday through Friday trying to figure everything out, let the automated Forex trading software handle the trades for you.
Why I recommend software to maximize forex pips
As I mentioned, the software can monitor and respond to the currency markets based on predetermined indicator. There is another reason why you should use a Forex Robot instead of trading all by yourself... EMOTION. Let me explain...
Trading forex is very thrilling. Watching the pips go up and down, especially when real money is on the line, is quite a thrill. But you don't want emotion to guide your trading. Greed and fear are expected emotions when dealing with something as exciting and potential profitable as Forex trading. And you don't want these emotions clouding your judgement in your Forex trading. By removing emotion from your trading, a computerized program can help you to make your currency trading profitable.
It is a great feeling when you see the pips working in your favor. If you want to maximize Forex profits and minimize losses, then get an automatic Forex robot. Put your trading on autopilot. Not only is it easier, but also more profitable.