Profit/loss calculations

As you noticed, I am back to calculating profit in pips as opposed to dollars because I think that pips are more meaningful. Everyone can multiply pips by the size of lot available to his/her account size.

While re-investment of capital is a huge part of building your account, for the purposes of this blog, I am not going to include re-investment into the calculations. 
To appreciate the impact that compound interest makes on successful trading, see my post “How much money can you make trading Forex?