In Part 1 of 'Learn The No B.S Method To Successfully Trading Forex' we discussed money management and how small daily targets will inevitably make you very wealthy.
Just to recap on this I am talking about 3-5 pips a day, I personally go for 3 pips and I'm done. Now you may laugh but I have little risk in the market and a $10,000 account would grow to $571,474 in 24 month with only 3 pips a day!
Getting consistent with extracting 3 pips a day take some practice, by consistent I mean you should not have a loss more than once a month. Trust me this is possible when your targets are so small.
I recommend trading the London open and it is crucial that you have a broker that allows scalping (any legitimate broker does) and has spreads of 1 pip or less, I pay 0.9 on the EURUSD at the moment.
Wait for the London open to get under way with a small trend forming on the 5 minute charts. Always keep an eye on the 1 hour charts for strong support/resistance areas. We do not want to be buying into resistance.
Once you have an high volume candle that has closed with the trend initiate the trade in that direction with a 20 pip stop. Keep a close eye on your profit/loss and never let the trade go against you by more than 6-8 pips. The 20 pip stop is a safety net only in case of emergency and you could not close the trade manually.
This is not the only way to trade the forex market and capture 3 pips a day, you may have your own strategy to achieve this however what is important to understand is you do not need a huge amount of pips to become wealthy, its all about consistency.
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