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Originally Posted by Patrick_Rhodes
If you place a stop only a few pips away (your target), guess what will happen? Stops are just a target for losses to a scalper. Obviously you must be confused about what scalping is.
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Well now I'm even more confused than ever, or perhaps it's you!
How is a stop 'your target'? 'Stop' is short for 'stop-loss', a price where a trader recognises his trade is no longer viable and accepts a loss. Stops are used to limit risk and protect capital, without a stop-loss you may as well just write a cheque to your broker and save yourself a lot of time!
Scalping for 3 or 5 pips is fine in theory, but putting it safely into practice without any idea of where your stop is going to be is a guarantee to go broke sooner or later
Brokers don't mind your sort of scalping, they know they're only lending you the money for a little while, it's all coming back their way with the rest of your capital, it's just a matter of time and they're patient.
But like I say, it's your money and you can spend it any way you want, after all said and done my profits have to come from somewhere!
Mick