Scalping – pips per day/ trading time

We hear the risk management and risk/reward is the key in trading.

I agree

But from what I’ve read on here, people don’t generally believe in setting pip targets. The arguments I’ve read are “take what the market gives you” and “pips don’t matter, what matters more is risk reward”

But I kind of disagree with those points

Setting targets does matter and make a difference, IMO. Yes, you can say “I want o make 50 pips today”. Will you make you target? Absolutely no clue. So I agree, just because your setting a target doesn’t mean that you will get it

The market may be slow (ie. trading into a Fed meeting) and there might not be any set ups.

So you have to take what you get….

So why do I think setting a pip target is important?

One word: overtrading.

Trading is a business – it’s our job to make money and get in and get out as fast as possible. Setting a pip target is one way to avoid overtrading. If you just are trading thinking about risk- reward and take what the market gives you, you may be up 20 pips and on fire…then give away everything by overtrading.

I might not have worded this post the best. But I feel that setting pip targets is useful since you’re job is to get in and out. Make that $1000 or $250 or whatever and get the fuck out of there.

Granted, I believe the holy grail in trading is risk for reward and risk management. But say you realise this and trading the right set-ups that look like 1:2 or 1:3 risk- reward set-ups and you’ve hit your daily target with a few good trades.. get the fuck out of there

That said, another idea to avoid overtrading, if you don’t believe in setting pip targets, is setting specific trading hours (ie. 9-11am or anytime that suits). That way you’re focused for that specific amount of time and know when to get the fuck out of the market

What do you prefer with the above, in terms of the strategy to avoid overtrading? You need to focus and keep your alert after all. There’s nothing worse than making a few good trades and undoing them with overtrading.

In terms of setting pip targets, what’s your number and why?