Implementing the 50 Pips Per Day Strategy: A Guide for Beginner Traders

For novice traders seeking a strategy that is not only easy to understand but also potentially profitable, the 50 pips per day strategy can be an attractive option. While it may sound ambitious, this strategy can succeed if implemented carefully, supported by mental preparedness and high patience. Here is a step-by-step guide to implementing the 50 pips per day strategy:

1. 1. Determine the Right Set Up
   Before starting trading, determine the right set up. Here are some things to consider:

• - Set Trading Hours
• Use recommended trading hours, such as London or New York time. Adjust the time according to GMT on the 1-hour time frame. Consult with your broker to ensure the correct timing.
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• - Forex Indicators
• This strategy relies on price action, so it does not require complicated technical indicators. This makes it suitable for beginner traders who do not want to deal with complex indicators.
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• - Time Frame
• Use the 1-hour time frame, but experimenting with other time frames is also allowed.
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• - Currency Pairs
• Use major currency pairs such as EUR/USD or GBP/USD, and make sure they have a daily movement range of up to 100 pips.

2. 2. Trading Rules for 50 Pips Per Day
   Pay attention to the following rules to successfully execute the 50 pips per day strategy:

• - Place Pending Orders
• Shortly after the GMT 7 am candlestick closes, place a buy stop pending order 2 pips above the highest point and a sell stop pending order 2 pips below the lowest point.
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• - Cancel Other Pending Orders
• When one pending order is triggered, cancel the other pending order.
• - Stop-Loss
• Place a stop-loss 10 pips below the lowest point for buy orders and above the highest point for sell orders.
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• - Target Profit
• Set the target profit at around 50 pips. Let the market work and avoid unnecessary interventions.
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• - Money Management
• If the trade is unsuccessful or the profit is too small, consider closing the trade or moving the stop-loss to the break-even point.

3. 3. Advantages of the 50 Pips Per Day Strategy
4. Trading using this strategy has several advantages:

• - Simple
• This strategy is easy to use because it does not involve complicated technical indicators. Traders only need to pay attention to price action.
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• - Suitable for Beginners
• This strategy is recommended for beginners because it helps avoid overtrading and provides clear targets.
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• - Time-Saving
• Traders do not need to constantly monitor charts and markets, making this strategy efficient in time management.

4. 4. Important Considerations
   Before starting trading with the 50 pips per day strategy, several important things need to be prepared:

• - Use Highs and Lows of Candlesticks
• Utilize the highs and lows of candlesticks to determine support or resistance levels. When these levels are exceeded with high volume, it can be a signal of strong price movement.
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• - Risk Management
• Always use stop-loss for risk management. For beginners, it is recommended not to risk more than 2% of the trading account balance.
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• - Strategy for Swing Traders
• Although this strategy is suitable for day trading, if you want to use it for swing trading, consider using additional technical indicators.
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The 50 pips per day strategy can be an attractive option for beginner traders looking for a simple and effective approach to forex trading. By adhering to the rules and paying attention to important factors, traders can increase their chances of success. However, it is important to remember that no strategy is without risk, and every trading decision should be based on careful analysis.

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