If we trade short term and/or scalping (1M, 15M), we are checking the charts all the time, sometimes even gets obsesive and risk to go out of the trade too early and take only a few pips of profit. But the advantage is that we use lower stop loss and if it goes against us
If we leave the trades for longer terms, (4H and more) we need a HUGE stop loss because the market can move hundreds of pips down and up in less than a week period, and if you are hit by a STOP LOSS of 100 or more pips you are losing a lot of money.
I see some people leave the trades open for days and don't worry, then go and make other activities and come back. But what's their STOP LOSS, what's their margin? I really wonder.
Yes, someone will say, trade the way you feel confortable with... But that's not exactly the problem here.. I'm trying to understand how do you manage STOP LOSS and margin in huge trades... Do you have huge account of 100K + more?
If most people recommend to trade on 4H + for a new trader, how is he supposed to trade if the market moves hundreds of pips in 4H charts, and he usually has a micro account? (even in 1 pip per cent makes no sense)
Yes, someone else will say: "well, the problem with new traders is under capitalization". But anyway. That's a big mistery.
If we leave the trades for longer terms, (4H and more) we need a HUGE stop loss because the market can move hundreds of pips down and up in less than a week period, and if you are hit by a STOP LOSS of 100 or more pips you are losing a lot of money.
I see some people leave the trades open for days and don't worry, then go and make other activities and come back. But what's their STOP LOSS, what's their margin? I really wonder.
Yes, someone will say, trade the way you feel confortable with... But that's not exactly the problem here.. I'm trying to understand how do you manage STOP LOSS and margin in huge trades... Do you have huge account of 100K + more?
If most people recommend to trade on 4H + for a new trader, how is he supposed to trade if the market moves hundreds of pips in 4H charts, and he usually has a micro account? (even in 1 pip per cent makes no sense)
Yes, someone else will say: "well, the problem with new traders is under capitalization". But anyway. That's a big mistery.
The Black Swan: The Impact of the Highly Improbable