Quote:
|
Originally Posted by MickMason
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 |
Like I say, scalping is for only a few points, not 10 or 20, and most forex platforms will not even let you place a stop for that short a distance from the most recently traded price. In truth, I do not believe the forex market even qualifies as a viable market for true scalping. Take it from one who has done it for over 10 years.
Patrick