Quote:
Originally Posted by cadarkitek
Whats a reasonable stop loss for 5 pips profit? Anyone? I'm curious because I think setting 5 - 10 pips target is crap.imo
|
ya, a 5-10 pip stop loss will get hit pretty easily. I believe this is the problem with wanting small gains. Because you'll need a larger stop loss to potentially cover the small swings...
this just means that unless you're wins far exceeds your losses, then you could end up making a couple good 5 pip trades but having 3 or 4 larger 10 or 15 pip losses, meaning you're in the black.
If you want to make 5-10 a trade, develop a plan that you feel confident you'll come out on top of 70% of the time, that way even with a couple losing trades you'll be out on top.