The point is: If you loose 6-10 pips you can gain back within a day or two (and you will have money to take the next trade)... but time based exit will save you some pips as you will close the trades with -4 pips, if it does not move in your direction... Why small target of 3-6 pips: Easy to gain in any choppy market... small drawdown, so you can trade more lots with high leverage and easy to compound... Shorter the time you stay in the market lesser the risk... With practice -- most of your trades will be winners... and trade with discipline and try to end every day with positive equity (you have three sessions)... That's all... KISS... Cheers,
At risk of causing an international cyber-incident, by saying what I think, qwac's post is prolly closest to the point of truth. Its takes some time to learn and understand the natures of the currency pairs you follow and it takes some time to trade without losing your emotion or being over ridden by your emotion. This is coming form some one with only a couple of years experience and only just now I'm starting to be profitable, "border line" Take it easy big boys. FXOTC
I didn't mean to discourage him. If you can consistently go into the market and profitably pull out 3 to 6 pips, then you are in the minority of traders who have a 'feel' for the market. It is irresponsible to suggest that others can easily do the same.
Not really ES... I know several traders scalp from M30 and 1H timeframe too... They are looking for their small set target with high probability during the breakouts or Sup/Res... Cheers,