Can you make 100 pips a day in forex? (2024)

Making 100 pips a day in forex may be possible, but not everyone can do it. You will have to be an experienced trader who can use more advanced strategies. To achieve this goal you can combine different strategies, such as scalping and swing trading.

Making 100 pips a day in Forex is not an easy fit, and it is a great achievement for many traders as it requires hard work and dedication. With trillions exchanged every day, the forex market remains an exciting financial market that is, nonetheless, a high-risk, high-reward market. Making consistent profits requires you to have a strategy that works and the right mindset. If you’ve got what it takes and remain focused, it is possible to make 100 pips a day in forex.

What is a pip?

Before we make things more complicated, it is good to set the basics. Firstly, a pip is the smallest unit of measurement in the forex market. The pip is one-hundredth of a one percent (1/100 x.01) and is fourth decimal place at (0.0001). This is the smallest price change increase in most forex pairs. The bid-ask spread of a forex quote is calculated in pips. For example, if the GBP/USD pair is trading at 1.1267, a one-pip move would be from 1.1267 to 1.1268.

How to make 100 pips a day in Forex

While making 20 pips a day may seem like a reasonable goal, some traders aim for even higher profits. Making 100 pips a day in forex is possible, but it requires more advanced strategies. You can go after short-term price movements but also hold your position for longer periods to go after bigger profits.

Many traders who want to raise their stakes may choose to trade several currency pairs at once, which can help them make as much as 100 pips a day. However, with such a strategy, you need to be able to monitor all these pairs and remain focused and alert, which can be time-consuming and challenging.

Strategies to help you make 100 pips a day

1. Scalping strategy

Many forex traders prefer scalping as a strategy, allowing them to take small profits by placing many trades throughout the day. By exiting and entering the market quickly, scalpers seek to make quick profits from short-term price movements. However, to make 100 pips a day with this strategy, you will need to make numerous trades, and each trade will have to provide you with a small profit. You will need to be disciplined and quick to make fast decisions.

2. Swing trading strategy

With a swing trading strategy, you can hold positions from as littles as a few days to up to a few weeks. Unlike scalpers, swing traders will go after bigger price movements and look to make bigger profits. To achieve 100 pips a day, a trader will need to do their research and have a certain level of skill so they can discover currency pairs that have a strong trend and hold their positions for a few days. Like with scalping, swing trading requires a trader who is disciplined.

3. News trading strategy

The news trading strategy is exactly what it says. It is a strategy based on the release of economic news and reports which may move a currency pair up or down. Some economic releases can cause big price movements in the forex market, but to make a 100 pips a day using this strategy, traders will have to closely watch the economic news releases and have a good grasp of how these releases may affect their currency pairs.

3. Breakout strategy

Another key strategy that traders can follow is the breakout strategy where they identify key support and resistance levels and enter the market when the price breaks through these levels. Traders can make profits when breakouts lead to big price movements, as long as they enter the market at the right time.

5. Risk management

When you trade forex, you need to know how to manage risk. If you want to focus on making 100 pips a day in forex, you will need to adjust your risk-reward ratio and use stop-loss orders to manage your losses. Always ensure you are trading with capital you can afford to lose and always risk a limited percentage of your capital on each trade.

Additional tips to maximize your profits

• If you want to test your strategies and explore the markets without added risk, you can always use a demo account.
• Track your progress and identify areas for improvement by keeping a trading journal.
• Always keep abreast of market moves by staying updated on news and events that can influence the currencies you are trading.
• Use risk management techniques by setting stop-loss and take-profit levels.
• Stick to your trading plan.
• Keep educating yourself and continue to learn new strategies and techniques.
• Keep emotions in check.
• Remain flexible and continue to adapt. The forex market is a dynamic place, constantly changing, and what may currently work, could fail tomorrow. Analysing and adapting to new conditions, trends, and developments will help you remain updated and make more accurate decisions that could have a positive impact on your trades.

Common mistakes to avoid

• Overtrading: Trading very often and taking unnecessary risks may lead you to lose more than intended. Sometimes less is more.
• It goes without saying that patience, discipline are important and lacking in both is dangerous. If you don’t follow your trading plan and take action recklessly, you are bound to make impulsive decisions you may regret later.
• Not using stop-loss orders could lead to further losses if the market fluctuates unpredictably.
• Don’t go chasing profits for the sake of making more profits, risking all your funds. Making 100 pips may sound great, but no need to lose everything by taking unnecessary risks.

In conclusion, making 100 pips a day in forex is possible, but you will need to be careful, make rational decisions, exercise discipline and have a sound trading plan and follow a trading strategy, that works for you and your style.

Traders will also need to select the right currency pairs, use an appropriate trading strategy, and remain focused and disciplined to achieve consistent results. Making 100 pips a day is not an easy fit but requires hard work, dedication, and discipline. As mentioned, it is important to educate yourself and have a good understanding of how the forex market works and what strategy could be better to achieve such a goal.

Risk management, the right mindset and strategy, may help you make 100 pips a day but this means you will have to be patient and dedicated. As it goes, with any type of investment and trading, there is always risk and there are zero guarantees of making profits.

However, by following these tips and strategies we have outlined here, you may be able to increase your chances of making 100 pips a day and possibly accomplish your goals in the forex market. Nonetheless, whatever your intentions and plans, keep educating yourself, stay disciplined, and always have a bulletproof risk management plan in place.

Disclaimer:
This information is not considered investment advice or an investment recommendation, but instead a marketing communication. IronFX is not responsible for any data or information provided by third parties referenced or hyperlinked in this communication.