[0:00]So you're a new day trader and you want to learn how to calculate pips on different currencies, whether it's forex, whether it's cryptocurrencies or indices. In this video, I'm going to show you four amazing tools that you should use on a daily basis to help you with your day trading.
[0:16]Welcome back to the channel, everybody. My name is Arty and this is the Moving Average, a show where we discuss everything day trading to keep you profitable on a consistent basis. Okay, so pip count on different currencies and different pairs and different indices, they're completely, it's just a weird thing. They work differently. Let's jump into the charts and I'm going to show you exactly what I'm talking about. So, we're looking at Euro USD right here. The current price is 1.19269. So that means for every 1 Euro, you will get 1.19269 US dollars. Okay, so at this decimal point, that is where you start counting back four places. So, 1, 2, 3, 4. If this number goes up or down one digit, so this goes to 27 instead of 26, that is one pip up. So if this price went to 1.19369, that would be a difference of 10 pips. Now, let me show you what 10 pips looks like on Euro USD. Using our measuring tool on the left-hand side, this right here, this small amount of space is 10 pips. Now, that's the first tool that we're going to talk about. On the left-hand side of TradingView, there is an icon that looks like a ruler, it is your measuring tool. You can also click Shift and then click and drag it out and this is your measuring tool. It will show you how many pips in a specific time range you're looking at. Now when looking at a different currency pair, GBPJPY, so British pound and Japanese Yen, you can see that the price is completely different and it is 151.306. So if you just want to do this in your head really quick, you would just move this decimal point to right here and then count back four places. So after the first digit, this would be 1, 2, 3, 4. And just to clarify, so for one British pound, you would get 151.306 Yen. So, if this price right here goes to 31, that's one pip. So, for example, say it goes to 406, that would be 1, 2, 3, 4 places, these two numbers, you're looking at 10 pips on GBPJPY. Now, let's take the measuring tool and see what 10 pips looks like on here. Again, a very, very small section. Getting 10 pips in the market is quite easy and it happens very fast. Now, instead of doing all of this math and looking at the fourth decimal point, say you're looking at Bitcoin US dollar. You just take your measuring tool and you're getting a lot more pips than you would in forex. So say this one candle right here is 22,968 pips, which is a price difference of $229. Which is why most people with small accounts trading 0.01 lot sizes should not do indices or cryptocurrencies or gold for that matter. A $1 move in indices and cryptocurrencies is substantially more, if not a hundred times more than a move in forex. Same goes with indices like US30. You take your measuring tool and this one candle right here was 946 pips. So, when you're calculating lot sizes, there are three different measures of lots. You have 0.01, 0.10, and 1.00. This is called a standard lot. This is called a mini lot and this is called a micro lot. If you're new and you're trading real money, stick with this one before you start going crazy with these bigger numbers and you'll actually have a more comfortable time trading because even if you lose, it won't be that much money. But try to stick to forex only. So, the other three tools that I want to show you really quick. So, all of these websites are free and they will be linked down below in this video, but the first one is going to calculate pip amount and the lot size to show you how much profit you would make on that. So you would type in the pip amount right here, the currency pair that you're trading, the trade size in lots that you're trading and the base deposit currency. For me, it's USD. So, with a 20 pip move on a 0.1 lot size, I'm looking at a $20 profit. And as you can see, every single currency pair is on here and you can do any trade size that you want. This calculator is amazing. Now, the other two things that you can use, they're not really in accordance with measuring pips, but they will help you in your evaluation of which currency is stronger or weaker than the other one. So this website is called Live Charts. It shows you all of the major currency pairs right here, or at least it did at that time and their strength at that time in correspondence with others. So, as you can see right here, JPY is very strong and GBP is very weak, giving you an indication of where the price is going to go. The other one is on investing.com. It shows you the major forex currency pairs right here and on which timeframe, the 5-minute, the 15-minute, the hourly and the daily. It tells you what the market sentiment is, whether it's a strong sell or a strong buy. So, using these three websites as well as the measuring tool on TradingView is going to give you a clear indication of how much profit and loss you're willing to make or potentially gain in your day trading journey. I always suggest starting with a demo trading account. That way you can play around with different lot sizes, different values, different deposits as your main balance for your day trading journey. And this way you can test it out, see what works for you, see what you're comfortable with and that way you get to know the pip count on each currency pair. If you guys enjoyed this video and got some value out of it, don't forget to leave a like and subscribe on your way out and we will see you in the next video.
