Lesson 3: Targeting 20 Pips Per Day in Day Trading and Scalping

Introduction

• Lesson focus: Achieving 20 pips per day in trading.
• Not guaranteed to achieve 20 pips daily; market conditions vary.
• Important to take profits when hitting the target of 20 pips.

Key Concepts

• Market Environment Analysis:
  • Understand market conditions: consolidation, reversal, expansion.
  • Homework is essential for assessing the current market.
• Daily Objective:
  • Aim to bank 20 pips in every day trade.

Trading the Asian Session

• Preferred method for scalping:
  • Buy Setup:
    • Trade during Asian session up to 12 a.m. New York time.
    • Identify short-term lows from New York session; trade long after Asia probes low.
  • Sell Setup:
    • Same time frame as buy setup.
    • Identify short-term highs from New York session; trade short after Asia probes highs.
• Timing: Utilize a five-minute chart, targeting a fixed 20 pips.

Patterns to Look For

• Short-Term Highs/Lows:
  • Look for small pockets of stop-losses above/below these levels during the Asian session.
  • When price breaches these levels, anticipate a fade or reversal.
• Examples:
  • Dollar-Yen and Aussie-Dollar patterns showing trading opportunities before midnight.

Trading the New York Expansion

• Buy Setup:
  • Trade during New York session up to 10 a.m. New York time.
  • Look for short-term lows formed during the New York open, targeting expansion towards the five-day average daily range.
• Sell Setup:
  • Opposite of the buy setup; trade short after probing the highs established in the New York session.

Charts and Examples

• Various charts illustrated showing the effectiveness of the setups in different currency pairs:
  • Emphasis on reaching 20 pips from short-term price movements.
  • Real-time examples of how setups lead to profitable trades, even in low volatility pairs.

Conclusion

• Practice:
  • Emphasizes the importance of practice and not forcing trades every day.
  • Encouragement to analyze multiple pairs for potential setups.
  • Not every trading day is equal; look for consistent patterns in price action.

Final Notes

• Keep focused on short-term intraday opportunities across various pairs.
• Universality of the discussed techniques applies to different markets (stocks, commodities, etc.).
• Wishing luck and good trading until the next lesson.