Win / Lose = Lose
SL = 2 pips
TP = 4 pips
Reward / Risk = 2
Transaction cost = 0.55 pips
Net loss = -2 - 0.55 = -2.55 pips
I saw a tiny, low-volatility candle on the M5 chart along 1.36000, which looked to act as near-term support. 1.36000 broke by about 4 pips, taking out my stop loss.
Looking at the chart now, I can see that price had begun to travel along a slightly bearish channel, with lower highs and lower lows. I should avoid trading against near-term momentum.
Scalping has always appealed to me. I am still trying to master it. Which broker are you using and are you a full time trader? Are you using mental stops for your stop loss because triggering a trade and then closing it out so soon leaves no room for error... Cheers from Auckland NZ
ReplyDeleteI'm with IC Markets (http://www.icmarkets.com/).
DeleteI'm not a full-time trader (yet). I do work but am on annual leave atm, so I've dedicated my holiday time to building scalping experience.
ATM my stop losses are determined by volatility, but depending on price action, I might move my SL to breakeven or exit the trade altogether. I should note that I am defintely not a profitable scalper and most of my experience has been with "swing trading" off the daily and weekly charts. :)