Something that comes up a lot when trading forex is pips and making money based on pips! So, what are pips? Pips stands for percentage in points. I am slowly starting to understand PIPS and how it works and how traders interpret or use them so this will be a very basic overview, feel free to comment about pips too if you have something to add.
Pips are a thousandth of a penny. Trades in forex are measured in pips by the price changes in currency pair, which is something I don't completely understand but I'll get to that. One pip can make a huge difference when you trade, so I’ve been told. It’s the fourth digit after the decimal. For example: 1.17058 the pip is the 5! Math is easy.
“When you're buying at the asking price (say, 0.9714) and a seller is selling at the bid price (0.9711), the broker keeps the spread (3 pips).” https://www.thebalance.com/forex-pips-definition-what-are-pips-1344985
But, honestly, that’s my whole understanding of pips because I use the broker Videforex and I just place a trade, either a call or a put, depending on my entry point and hope that it goes the way I predict it to go and usually I just make 60-70 (or more) % of what I risked. So, as much as I hear about the value of pips, I don’t seem to be using it or noticing? I have only been using Videforex for a month or so so maybe I am just missing something.
Does anyone else use Videforex to trade currencies?
Side note that has nothing to do with PIPS:
I truly believe that this game of money has a lot to do with mindset and breaking out of old thought patterns. I grew up thinking that people with a lot of money were bad or corrupt, people who wanted to be rich were selfish and blahblahblah. But now, I have a totally different mindset, thank god. I know that money is a tool, money is a transfer of energy, it can be used to purchase freedom and time in a sense. Time is limited, yet we all have the same 24 hours in a day. There are two types of people in this world those that work for money and those that make their money work for them so that they have time to live their life during their prime years. Society is so backwards. We grow up thinking we have to work to live and then before we know it we are too old to do anything fun because we never had the time and we spent all our money trying to keep up with the Kardashians. I am so glad that more and more people are figuring out that this isn’t the way. There’s a way to have money and time. There’s crypto, foreign exchange, day trading, stocks, bonds, real estate, dropshipping, Amazon, thrifting, DIY, Youtube, Instagram, literally all the social media platforms…. People make money now by posting videos of them dancing or asking other people what they do for a living. People make money by watching other videos for a reaction. There is a 4 year old who is a millionaire because he reviews toys on YouTube. The world we live in today is absolutely incredible. People are waking up and realizing that the limit truly does not exist and that we live in a world of abundance.
I just had to take a moment to speak about this because sometimes I get caught up in the wrong things and forget that we were born in an amazing time. Think of something that you enjoy doing, something that makes you happy and energetic and passionate, and then go for that. Do that. Keep your 9-5 to pay the bills, until you don't have to have a 9-5 anymore, and then use your hobbies as side hustles because life is too short to just constantly be struggling to keep up. Use time outside of your job to learn as much as possible about investing, finance, personal development, etc.
It’s important to enjoy life and to have fun as well. It’s important to save and earn money but it’s equally important to spend it on things or experiences that bring you joy. It’s important to spend because it keeps that energy in flow, giving and spending is just you putting your money or energy out there so that it can come back to you. You must keep this open and give. Have money in a savings account, in a retirement account, invest, pay yourself 10% of everything you earn but also have some money that you can play with so that you don’t forget that enjoyment and feeling of doing things for yourself.
I am practically starting from the bottom. I shouldn't even be saying this but I have way less money than I did a few months ago. I am doordashing and spending more than I am earning because I am not earning much. I did get a 14 dollar tip yesterday thought which was pretty sweet! I am learning how to trade because I hear how easy it is and how exciting it is and I do it cautiously. Sometimes I get really down on myself though and so I wrote this to remind myself how far I have come. I have a savings account, a RothIRA, stocks, bonds, and crypto. I have the mindset of abundance. I am grateful for this journey. I am grateful that I discovered books like You are a Badass by Jen Sincero and Rich Dad Poor Dad by Robert Kiyosaki and The Science of Getting Rich by Wallace Wattles. These books have opened the door to a different mindset and that is key. Because if you want to change your life you have to start with your patterns, which means you have to really look at what’s going on in your head. If it’s the same thing every day then something different needs to happen. You have to break the thought patterns by changing your habits. Switching your old habits for new ones. Wake up earlier, try meditating, journaling, writing down your goals, affirmations, visualization, etc. You hear yourself saying things like “I can’t do that because I’m too broke”, first become aware and then quickly change it and say “I’m focusing on my wealth right now, raincheck?” Replace all your negative thoughts are most likely false anyway with positive thoughts, even if it feels silly. Use the word "yet", "I'm not there, yet." Try to catch yourself when you start to complain or gossip. Keep a distance from people who constantly talk about their problems. Put yourself in rooms where people are making more than you and have goals (whether a real room or a breakout room). There is something that we can daily to move us forward but it starts with our mindset!!
This week my goal was to wake up earlier. It’s been a rocky week but I’m hoping to continue with the 6 am phone calls from my accountability partner and to really have a solid morning routine because that is something I never really had. Also, I went for a run yesterday and I am not a runner. I actually really don’t like running…. Well at least the old me didn’t like it. I am trying rehearsing for the person I want to be. You don't just wake up one day with abs, you have to put in some effort to have them. You don't just wake up one day a successful artist, you have to get the supplies and paint. You have to practice for soccer or piano, just like you have to practice for the person you want to become. Your future self is depending on the habits and efforts you put in now.
After putting out my random trading bit and thought of the day I am going to go for another run. Repetition is the mother of all skill and habit. Hope everyone is having an amazing day! I will leave you with two questions.
What are some books that have helped you discover a new way of thinking about money?
What are 2 new habits that you have formed or are working on?