How I Made Money on Forex Even While Losing Pips

At first glance, it sounds impossible: how can a trader make money while losing pips?

Since pips (price interest points) are the standard metric of trading success on Forex, one would assume fewer pips = less profit. But in reality, profits and losses in real money are influenced by much more than just the number of pips gained or lost.

📌 What Are Pips?

A pip is the smallest price movement a currency pair can make. For example, if EUR/USD moves from 1.1000 to 1.1001, that’s a gain of 1 pip.

Pip tracking is useful to compare trades over time, but pip counts don’t tell the full story — especially when trade volume and strategy are involved.

💸 Why Lot Size Matters More Than Pip Count

Example:
- Trader A loses 20 pips trading a 0.01 lot → ~$2 loss.
- Trader B loses 10 pips trading 5 lots → ~$500 loss.
- Trader C loses 25 pips across several small trades, but makes 5 pips on a large position — and ends up profitable.

📈 Net pips: negative
💰 Net money: positive

🎯 1. Lot Size & Risk Management Are Key

If you:

• Close many small losing trades (e.g. -3, -5, -7 pips),
• But catch a profitable move with a larger lot size,
• You may still be profitable in real money, even if your overall pip total is in the red.

🔁 2. Averaging Strategies Work Differently

Averaging (or grid trading) means opening additional positions at better prices when the market moves against you.

Scenario:
- First trade: -20 pips
- Second trade (lower entry): +10 pips
- Combined result: -10 pips
- Actual profit: positive due to volume and pricing difference

Many Forex robots and EAs (Expert Advisors) use averaging to generate profit from volume, rather than sniper-like entries.

🏦 3. Cashback From Brokers: Hidden Profit Stream

If you trade through a rebate (cashback) system, you get paid for trading volume, not just winning trades.

Example:
- You trade 10 lots today
- Rebate rate = $0.70 per lot
- You receive $7 even if you lost $3

➡️ Final result: pips negative, balance still in profit

⚖️ Conclusion: Pips Are Not the Final Metric

In Forex trading, focusing only on pips is misleading. What actually matters:

• Lot size & trade volume
• Net cash outcome per trade
• Risk and capital management
• Rebate & cashback programs
• Strategy used (manual or automated)

🚀 Final Tip

If you're using automated strategies or averaging robots, always track profits in real money — not just pips.

Because at the end of the day, the broker withdraws dollars, not pips. 😉