How to make 20 Pips Per Day in forex trading with ICT? (2024)

In the evolving landscape of financial trading, the quest for consistent and attainable goals remains a key driver for both novice and seasoned traders alike. The concept of extracting a regular profit from the markets, be it through forex, crypto, or stocks, has often been romanticized, yet the practicality of such an endeavor requires a blend of strategic finesse and disciplined execution.

Among the myriad of strategies and approaches that have surfaced, one stands out for its simplicity and targeted focus: the pursuit of 20 pips per day. This strategy, popularized and refined by concepts from ICT, or Inner Circle Trader, offers a blueprint for traders aiming to achieve daily incremental gains with an emphasis on consistency over sporadic windfalls.

What is the 20 Pips per day trading strategy in ICT mentorship?

The strategy aims for day traders to achieve a modest but consistent profit, recognizing that market conditions vary and some days may not offer any opportunities. Traders are encouraged to adapt to the market’s rhythm, always aware that the promise of daily profits remains unpredictable and cannot be guaranteed.

The technique resonates with a broad spectrum of traders, promising a structured pathway to steady growth. In this exploration, we delve into the mechanics of making 20 pips per day a reality, dissecting the intricacies of market behavior, and the disciplined approach required to turn this seemingly modest goal into a substantial long-term yield.

Targeting 20 pips per day in Forex

The 20 pips a day tradingDay Trading in Forex is a fast-paced trading style where financial instruments are bought and sold within the same day.... More strategy is a popular Forex trading approach where the goal is to earn 20 pips per day. This strategy relies on capturing small, consistent gains which can add up to substantial profits over time. For this strategy to be effective, it’s important to choose currency pairs known for their volatility, as they are more likely to experience larger price movements. Pairs like GBP/USD, EUR/USD, USD/JPY, and USD/CAD are often preferred choices due to their higher volatility. The idea is to leverage these movements to achieve the target of 20 pips daily.

Imagine a scenario where you’re trading EUR/USD with the aim of gaining 20 pips. Let’s say EUR/USD is trading at 1.1200. Your analysis suggests an upward movement, so you decide to enter a long (buy) position at this price. Your goal is to gain 20 pips from this trade. Since one pip in EUR/USD is equivalent to a 0.0001 change in the exchange rate, a 20 pip gain would mean an increase in the exchange rate to 1.1220 (1.1200 + 0.0020 = 1.1220). You place your buy order at 1.1200 and set your take-profit level at 1.1220. As the day progresses, the EUR/USD moves as you predicted and hits 1.1220. Your trade closes automatically at this take-profit level, securing you a gain of 20 pips.

Therefore, the 20 pips a day strategy requires a disciplined approach to capture these regular small movements, while effectively managing risk to ensure that these incremental gains accumulate over time without being offset by larger losses.

Can you guarantee 20 Pips every day?

No consistent profit like 20 Pips daily can be promised due to the inherently unpredictable forex market. However, the strategy serves as a structured approach to garner modest gains, understanding that there will be days when the market simply does not align with the trader’s goals.

How should one approach trading each day?

1. Preparation and Analysis: Begin each trading day by preparing thoroughly. Review the latest market news, economic reports, and any geopolitical events that could impact the markets. Analyze market trends and technical indicators to identify potential trading opportunities. It’s crucial to check the economic calendar for major announcements or events that might affect your trading instruments. Having a clear understanding of the current market environment helps in making informed decisions.

2. Strategy and Execution: Trade based on a well-defined strategy that suits your trading style and risk tolerance. Whether you prefer day trading, swing trading, or a different approach, stick to your plan. Set clear goals for each trade, including entry points, stop-loss levels, and take-profit targets.

It’s important to manage risk effectively, so decide on the amount of capital you’re willing to risk on each trade, typically a small percentage of your overall trading capital. Maintain discipline and avoid emotional trading; sticking to your strategy is key, even on days when the market is challenging.

What is the best way to secure 20 Pips per day?

Securing 20 Pips requires discipline and a measured approach. While not every trade will hit this target, consistently banking profits at the 20 Pip mark whenever possible can accumulate to achieve this goal over time.

Are there specific techniques to achieve the 20 Pip target?

Specific techniques, particularly scalping during quieter trading sessions like Asia or capitalizing on the volatility of the New York session, can be employed. These methods require a firm grasp of market behavior and the ability to act swiftly on short-term price movements.

Can this strategy be applied to the Asian sessionThe Asian session, which primarily starts at 8 p.m. New York time, can be a good time to trade certain... More?

Applying a well-structured trading strategy to the Asian session demands adapting to the unique characteristics of this market. First, it’s essential to analyze the key price levels and trends established during the New York session, as these often influence the opening moves of the Asian market. Understanding how these levels play out when the Asian session begins provides valuable insights for trading decisions. Since the Asian markets react to economic activities and announcements from major regional players like Japan, China, and Australia, keeping an eye on these events is crucial.

Additionally, the Asian session is known for its relatively lower liquidity compared to the New York or London sessions. This can impact volatility and price movement, requiring traders to adjust their strategies accordingly.

For instance, focusing on more liquid currency pairs might be more effective, and widening stop-loss margins could help manage the risks associated with sudden market movements. Stringent risk management is particularly vital in the Asian session due to potential unexpected market changes. Maintaining disciplined stop-loss orders and being cautious with leverage can help mitigate these risks.

Summary Table for Asian Session Trading:

What should be the timing for trades in the New York session?

For the New York session, timing is crucial. Trades should be executed before the market fully awakens, typically up to 10 a.m. New York time, allowing traders to leverage the initial market reactions and liquidity to reach their Pip targets.

How do you manage risk with this strategy?

Risk management is pivotal, with a strict stop loss of 20 Pips to safeguard against market volatility. This disciplined approach ensures traders can mitigate losses and protect their capital.

Is this strategy applicable to other financial markets?

While the strategy is designed with forex in mind, its principles are universal and can be adapted to other financial instruments, offering a versatile approach to day trading across various markets.

What is the key to successful implementation of this strategy?

The key lies in rigorous practice, continuous market study, and a commitment to a structured trading plan. Mastery of this strategy comes from understanding its nuances and applying it with precision and consistency.