How to correctly measure the pips won in an operation?

Suppose you're winning 10 pips in a 0.2 lot position. Would you count it as "10 pips" or "20 pips"? I'm assuming you opened those 0.2 lots in a single operation. I love the forex. Someday, he'll love me too.

When you use the "pipes" as a reference to assess whether a strategy is good, you don't need to adjust them to the lot size. The pips help you to know if your inputs and outputs are effective, without taking into account the management of capital. If you want to value your performance including the size of the position, it's best to measure it in percentage.

Gain on Pips = 10 Gain on $ = $3 x10 = $30.00

Measuring the pips without taking into account the size of the position is like saying that you scored a goal without mentioning whether it was in a professional game or in the park. Sure, 10 pips are 10 pips, but the impact on your account is not the same if you operate with 0.01 lots or with 1 whole batch. Ideally it is to separate things: the pips to see if your technical analysis is fine-tuned, and the money or percentage to know if your risk management is decent. If you only focus on pips, you might think that you are making gold, but have the account in red.

Many people get obsessed with the pips as if they were medals, but that doesn�t say anything if you don�t know how much you�re playing in each operation. You can win 50 pips in a mini position and keep losing money for mismanagement. In my case, what really matters is how much I�m risking for operation and how much return it gives me. Pipes are a part of the story, but if you don�t complete it with volume and risk, it�s an incomplete story.

It's funny how there are still so many confused with something so basic. Pipes are just a unit of measurement, like saying "meters" or "liters." It doesn't change if you operate with 0.2 or with 2 batches, the pipes are the same. Now, if you're talking about profit, there you do have to insert the factor of volume. And that's no longer a matter of pipes, but of knowing how much each one is worth according to your position. Don't mix churras with merins.

The question is valid, many novice traders have that doubt at first. But if you�re going to get stuck in that, you�re going to have problems when you have to analyze the actual performance of your operations. The most useful thing is to keep a separate record: one of the pips to evaluate your analysis, and another one in money to see the impact on your account. If you mix them, you�re going to have chaos that won�t let you learn anything useful.

Now, let's be clear. If you win 10 pips, you win 10 pips. Period. That doesn't change by the volume you use. What does change is how much you get paid for those pips, and that's where the lot size comes in. But if you're analyzing strategies or inputs/outputs, using the number of pips is the best way to measure effectiveness. If you put the money into the equation, you end up confused between luck and skill.

What happens is that many get excited about the dollars earned and forget that the market is not measured in money, but in motion. The pips show how well you read the market, the money only reflects how much you dared to bet. And we already know that betting more doesn�t mean to know more. So if you want to improve as a trader, focus on adding pipes with constancy first. You�ll adjust the volume later.

If you operate thinking about how much dollars you earn per pip, you're going to get carried away by greed. And that in forex is the fastest way to the margin call. You have to separate the emotional from the technical. Count the pips as if they were points in a game. And when you see that you're gaining points consistently, that's when you can think about raising the size of your positions.