I find whatever strategy trader is using it depends mostly on winning trades exceeding loosing trades and not leaving the latter to bigger amounts and limiting the first. The best RR can be 1:1 or 1:2
High Leverage does not mean risking the account to the last cent! But instead of risking 2% can risk 20%.
Why is it the same ending between a profitable scalper and profitable long term trader?
Simply because we are back to the same equation of:
Scalper Account Size 100K: Opens an order per time for 10 lots take profit 10 pip
Long Term or No Scalper Trader Account Size 100K: Opens an order per time for 1 lots take profit must be 100 pip to equate the goal of the Scalper.
Assuming that both have the same Daily Goal of 1K, Weekly of 5K, Monthly of 20K
As everyone can see, both have nearly similar risk. Maybe the Scalper risking more per trade but it's just a 10 pip move to target while Long Term risking 10 times less but have a long way to target of 100 pip, I doubt many traders can find a pair that moves that wide on daily basis nowadays!!
Conclusion: It's all about being patient and picking the right decision/trade per time, sticking to the plan on the long run, the scalper can have much less tire in achieving the goal.
My thread contradicts the main thought by many that scalpers = trading more= risking more than long term traders.
Ok, some may say the long term trader can set a position stop loss and take profit and leave it until any will be hit. But that might take days and not practical to market conditions and so what if the take profit had been filled after sometime?? for what amount?? 1 lot? vs 10 lot for less time entry and exit of trade.
Important point that scalper(not the 1-5 pip) does not have to trade lower time frames, what about trading higher ones like if was a daily trader for a daily plan to weekly and monthly overal goal, can enter that one or two trades per day relying on the daily chart, by that the risk would have decreased in fact without looking at the 10 lot vs 1 lot risk.
Be patient, have the ability to read the market movement right, trade strictly to your plan and you'll end profitable whatever lots trades you're using.
High Leverage does not mean risking the account to the last cent! But instead of risking 2% can risk 20%.
Why is it the same ending between a profitable scalper and profitable long term trader?
Simply because we are back to the same equation of:
Scalper Account Size 100K: Opens an order per time for 10 lots take profit 10 pip
Long Term or No Scalper Trader Account Size 100K: Opens an order per time for 1 lots take profit must be 100 pip to equate the goal of the Scalper.
Assuming that both have the same Daily Goal of 1K, Weekly of 5K, Monthly of 20K
As everyone can see, both have nearly similar risk. Maybe the Scalper risking more per trade but it's just a 10 pip move to target while Long Term risking 10 times less but have a long way to target of 100 pip, I doubt many traders can find a pair that moves that wide on daily basis nowadays!!
Conclusion: It's all about being patient and picking the right decision/trade per time, sticking to the plan on the long run, the scalper can have much less tire in achieving the goal.
My thread contradicts the main thought by many that scalpers = trading more= risking more than long term traders.
Ok, some may say the long term trader can set a position stop loss and take profit and leave it until any will be hit. But that might take days and not practical to market conditions and so what if the take profit had been filled after sometime?? for what amount?? 1 lot? vs 10 lot for less time entry and exit of trade.
Important point that scalper(not the 1-5 pip) does not have to trade lower time frames, what about trading higher ones like if was a daily trader for a daily plan to weekly and monthly overal goal, can enter that one or two trades per day relying on the daily chart, by that the risk would have decreased in fact without looking at the 10 lot vs 1 lot risk.
Be patient, have the ability to read the market movement right, trade strictly to your plan and you'll end profitable whatever lots trades you're using.