I find the simple strategies are the best. Looking at MACD and Stochastics and lines passing over each other, etc. just complicate things. One of my best strategies is just to trade the GBP/USD pair between the hours of 2am and 11am EST. Wait for price to move in one direction for 30 pips. Once the 30 pip mark is reached, I immediately open a 5 lot trade in the direction of the move and set a 20 pip SL. If price moves 10 pips in my direction, I close 2 lots with a 10 pip profit and move my SL to 10 pips from my BE. If price moves another 10 pips in my direction, I close 2 more lots at a 20 pip gain. I set the last lot SL to BE and wait for another 10 pip move in my direction. That's it. Simple and completely based on price action. The GBP/USD pair has many large swings daily and it's not uncommon for it to have 60 pip swings in either direction during the day. The one drawback to this strategy is that you need to be pretty much glued to your monitor and charts, so set aside time you have to do this. Good day trading does require a lot of time looking at charts, but if you like making money, then put up with the pain. No pain, no gain

I also stop trading if my first 2 trades of the day are losers. The most I can lose in a day is 40 pips and the winning trades can make these losses insignificant. I will have losing days and I accept that but I very rarely have a losing week and have yet to have a losing month. Consistency and good money management is the key to this business. Too many traders aren't disciplined and that's why most fail.

One very important thing I keep in mind is to never be in a trade during a major news event. News spikes can screw up nice technical trades and it's just not worth it. I also trade the news so that's another great way to make some nice cash in this business

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Andrew

sorry if i picked this up wrong but you say the most you could lose in any 1 day is only 40 pips,but you also say that when your entry target is reached you enter a "5 lot trade" with a "20 pip stop loss" does that not equal 100 pip loss rather than 40 pips,as you would lose 20 pips on each of the 5 lots?? then you say you stop trading if your first 2 trades are losers, if your second trade is also 5 lots then is that also not another 100 pips so a total loss of 200 pips for the day,as i say please correct me if i picked this up wrong

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No one saves us but ourselves, No one can and no one may. We ourselves must walk the path

The number of lots is a variable based on the size of one's account. The 40 pip potential loss is stated correctly - as it doesn't matter how many lots one trades. Pips is the universal language, the rest is just adding or subtracting zeros. based on account size.

1) do u count the 30 pips from 2am or earlier?
2) how do u count the next 30 pips, is it from were u win or lose or somting else

Hmmmmmmmmmmm on my planet if i enter a trade (full lot,mini lot,micro lot) with a stop loss of 20 pips and it hits my stop loss then i lose 20 pips,if i buy 5 lots with a 20 pip stop loss then i lose 100 pips.to only lose 40 pips with 5 lots i would need to put my stop loss to only 8 pips to only lose 40 pips

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No one saves us but ourselves, No one can and no one may. We ourselves must walk the path

if one order with 0.1 lot and one order with 5 lots - pips (points) are the same one. Does not matter which lot. Deposit currency is different.

This pips cacculation is out of any MM (money management). Because I may have 40 pips loss and you may have 40 pips loss using the same system. But my lot size may be 100 lots and your lot size may be 0.01 lot. Pips are the same ones.
If one order so it is the same.

If many orders so it may be different. For example:
1. EA (or trader) opens 1 order by 5 lots with 40 pips profit

2. the other EA (or traders) opens 5 orders by 1 lot with 40 pips profit each.

The first trader will win 40 pips in total and $ abc in deposit currency.
The second trader will win 200 pips in total and the same $ abc in deposit currency.