Stop chasing 20-30 pips if you want to become profitableOne of the biggest obstacles for traders who want to become consistently profitable is the mindset of chasing small 20-30 pip moves.
While it may seem appealing to enter and exit trades quickly for immediate profits, this strategy is often inefficient, risky, and unsustainable in the long run. Here’s why you should change your approach if you want to succeed in trading.
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1. Trading Costs Eat Into Your Profits
When you target small moves, you need to open and close many trades. This means that spreads and commissions will eat up a significant portion of your profits. If you have a spread of 2-3 pips (depending on the pair) and you’re only aiming for 20-30 pips per trade, a consistent percentage of your potential gains is lost to execution costs.
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2. High Risk Compared to Reward
A smart trader focuses on a favorable risk-reward ratio, such as 1:2, 1:3 or even 1:4. When you chase just 20-30 pips, your stop-loss has to be very tight, making you highly vulnerable to the normal volatility of the market. An unexpected news release or a liquidity spike can stop you out before the price even reaches your target.
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3. You Miss Big Moves and Real Opportunities
Professional traders focus on larger trends and significant price movements of hundreds of pips. The market doesn’t move in a straight line; it goes through consolidations, pullbacks, and major trends. If you’re busy trading short-term 20-30 pip moves, you’ll likely miss the big trends that offer more sustainable profits and better risk management.
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4. Increased Stress and Emotional Trading
Short-term trading requires constant monitoring and quick decision-making. This increases your level of stress and negative emotions like fear and greed, leading to costly mistakes. In the long run, this trading style is mentally exhausting and difficult to sustain.
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How to Change Your Approach to Become Profitable
✅ Think in terms of larger trends – Focus on 200-300+ pip moves instead of small fluctuations.
✅ Aim for a strong risk-reward ratio – Look for setups with at least 1:2 risk-reward to maximize your profits.
✅ Use higher timeframes – Charts like 4H or daily provide clearer signals and reduce market noise.
✅ Be patient and wait for the best setups – Don’t enter trades just for the sake of activity; wait for high-probability opportunities.
