Forex Trading System - 7 pips Trading System

Forex Trading System Introduction

This is a trading system created by niceguy from forexfactory, this is the original link.


Creator Description


This is a Trading system for Newbie. Why? Because they are the one who need help to get their feet stable in this Cold Business. So I build this system to train a new trader and hopefully I can help them for at least not to losing their money rapidly. I dont care about you guys who consider yourself as a "professional trader" . If you like what I do, just stay and give your positive contribution to this thread.But if you are here to say something bad without even trying, please stay away.

This startegy is only for those who want to learn and willing to take Forex seriously. (You will lose your money if you dont)


The Seven Pips
What is seven pips? This is the Stop Loss you will use. This, and this only. I use 7 pips because my current spread with EU is below 2 pips and I add another 5 pips as the real stop loss.

Forex trading System Rules

What do you Trade?
EU M5. I dont care about other pairs. You can try trade other Pairs if you like only with your own risk. 

Profits Target.
At least 10 pips. But personally I recommend 15 pips or even more. The nearest S/R lines or Pivots or Open price Level is also a good target. The Idea behind this is to stay as long as you can whenever you are right and get out as fast as you can when you are wrong.

Stop Loss
As I said it earlier, your stop loss is 7 pips. You can change and put your Target profits as you like according to your skill and Market condition. You can put your TP as far as you want but your SL is always 7 pips. No breaking rules, and no more moving back your SL. 

If your forex broker give you more than 2 pips spread, you can move to a new broker or add 5 pips to that spread as your SL. Why not more? Because if you really paying me your best attention, you dont need more. 


Punishment: 
You have to punish yourself for being a loser and Stop trading for a day whenever you have a loser. No more panic trading. No more "Trigger Happy" trading.

Why stop trading if we only loss 7 pips? This is not just about seven pips loser, but this is for building your discipline. You are a trader. Yes, Losing is just part of this business, but you are not suppose to lose oftenly. So whenever you lose, you have to create something to punish yourself . I punished myself with stop trading and buying food for the first beggar I meet on the streets. (But I also celebrate my winners with buying more for more of them happily later whenever I win).

Stop trading after losing seven pips will also save you from firing too many bad trades in a ranging market. You know how bad it is for your account. Trust me you will thank me for this later.

IF YOU BREAK THIS, YOU WILL FALL. Mark my word on this.

Rewards:
If your first trade scoring pips, continue with the second. But if the second failed you. shut your computer and be a gentlement. Punish yourself. Just go out there and have a life and stay away from your trading platform. .

If you manage to score pips on the second go on for the third and keep on going whenever you are winning and stop trading whenever you have 1 loser. This way the maximum of loss you will suffer in a day will be 7 pips and the maximum winner you will get is unlimited

The idea behind this is to stop trading whenever you are losing and trade more whenever you are winning. As long as you are winning, your next trade will be financed by the previous and so on. You obviously failed to read PA whenever you have a loser, and whenever you are in winning you obviously get on the right side in current market movement, so use that momentum to continue on.