First and foremost, I must start out like many others by giving big props to the creators of babypips… awesome site!
Without further ado, I’m a newbie who would like input on two things:
What are people’s experiences with the scalping method? It seemed to work well for me with the demo account, but for some reason I’m scared to try it now I have a real account. Basically, what I did on the demo was buy 10 lots for a profit/loss of $100usd per pip. I set my stop loss at 20 pips and my limit at 1 pips and it would always get me the pip before getting stopped out. Problem is I only did this for about a week, which I realize babypips recommends 2 months. Or, I thought why not just ask others’ experience? I think the “technical” term is called scalping? I’m guessing the problem with this method boils down to the fact that a single trade gone wrong erases the profits from 20 trades gone well.
The second question is, since I opened a real account about a week ago, my balance has fluctuated between $800 less than I started out with to $600 in the positive. My question is, at what point should I withdraw profits? See, what I mean is, when I opened the account I promised myself if at any point I fell $2000 below what I started with, I would stop trading. So now that I have been $600 positive, should my threshold change to $1400 below what I started with? I’m not sure if my predicament is clear. Ideally I would like to withdraw every time I have a profit but I only get 2 free wires per month, not to mention it’s time consuming. But if I don’t withdraw profits, I feel like I’m always going to be stuck on this -800 +600 range…
Thank you for any input on these issues!