Are you thinking about calculating your profits as a forex trader? You definitely should be! Don’t be shy about it either — if you aren’t looking at the money, how are you going to be able to really track your performance with any type of certainty? There are a lot of traders that would rather stick their head in the sand and just coast, but you really can’t do that in forex investing. It’s all about being as hands on as possible. If you don’t want to do that, then there are a lot of other places to be in the world of investing that will let you go more or less on autopilot. Yes, there are forex software programs that promise automation, but you have to have a certain level of skill in order to use those. Don’t get caught up in the game of thinking that you have to only deal with a lot of theory and no action, though — forex is all action paced when you really think about. And you’re going to have to get very good at making decisions very quickly if you want to keep up. The more planning that you put into your forex trading, the better results that you will get.
But we’re getting a bit off topic. You want to be able to calculate your profits at a glance, and we want to help you do just that. You need to turn to a pip value calculator for best results. Yes, we can show you how to calculate your valuations the long hand way, but virtually no one does that. Of course it’s taught to you so that you learn it and you’re able to double check. But what’s the point of technology if you never get to do anything with it yourself? That’s what we want to know.
A pip value calculator will just ask for a few values that you’ll need to enter in. One, you’ll need the trade size that you’re working with. If you’re working on a standard account, you’re going to need to enter in 10,000 when it asks you the lot size. A standard account is always 10,000, but a micro account is 1,000.
You’ll want to find your currency pair — this will usually be entered into a drop box. You will also see the current price for the currency pair in question. Make sure that you see the current price properly updated, or you won’t get the right value.
From there, it’s just a matter of hitting the calculate button and letting technology work for you.
We recommend keeping a chart of all of your profits and losses. Keep in mind that yes, there are going to be losses. But that doesn’t mean it’s the end of the world, and it certainly doesn’t mean that you have to give up. You just need to know what you’re working with and what mistakes you might be making. Hang in there and good luck!