March 2016

Here’s what happened in today’s Market.

 

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Have you asked yourself yet, ‘what is a PIP anyway and why should I care?’

Great question!  A pip is an increment of measurement in the FOREX market.  It stands for ‘point in percentage’ and depending on what currency pair you are trading, typically is 1/100th of a penny.

 

This is important to you for 2 reasons.  The first layer of importance lies within the Fx365i methodology that we teach at the institute. And the second, is eventually going to be important to your bank account.

 

First of all, the ‘Market Makers’ (mainly the big banking institutions), follow a repeated pattern of business in the market.  They accumulate the market to soak up liquidity (retail trader’s money), then they manipulate the market to knock said retail traders out of their positions (often times the majority of retail traders are correct in their market speculation, but not before the market swiftly moves against them to take them out of their position,) before ultimately taking the market where they need it to go to profit heavily.  This is all measurable in PIPs, which is good news for us because knowing some of the measurements these guys use, we can increase the affectivity of our speculation dramatically so that we can trade for profit.

 

The second reason that this is important, is because by knowing how the market reacts at certain prices, based off of repeated measurements, we can have a specific place of entry for our trades. This increases probability, and more importantly, allows us to more effectively manage risk.  If you buy a currency low, and it moves upwards in pips, you can sell the position you are holding and however many pips make up the difference between where you bought and sold, or sold and bought again (trading short,) are now yours to keep.  Simple enough right?  Even better, the market moves 100’s of pips ALL THE TIME…yes, like every day!

 

Oorah you might be saying to yourself.  But wait! It gets better.

Pips are pips, and if you learn the skill set of capturing pips consistently, you can literally write your own income.  How you ask?  Not by capturing more and more of them, but by assigning a higher and higher dollar amount to them.

 

This is the magic of FOREX.  Once you learn how to safely capture PIPS, you can give yourself a 50% raise overnight.  You can do that over and over again.  Imagine walking into your boss right now and saying, ‘I am going to produce the same amount that I currently do, I am going to work the same amount of hours I always have, and I want you to pay me 50% more!’  Now imagine doing that again next month, and then the month after that, in perpetuity.

 

No job I’ve ever had works like that, which is one of the many reasons it might be worth your time to learn how to safely and effectively trade the FOREX for profit with us!!!

 

Until next time, live happy and pursue your passion.

 

Payton Parnegg