That is my point, how can you make money scalping paying for insurance at the same time? That was BP futures by the way. British Pound that is.
what are you trading? if its forex.....just light your money on fire. you need to define "catastrophic"
I remember one of my girls, when she was about 3, I told her not to touch the stove that she would get burnt. Just as kids will do she touched the stove when it was hot and got burnt. DUH!! She never did it again. Sometimes, children are smarter than traders.
First maybe you should say why you think it may be less risky to trade shorts only? Hypothetically you have unlimited risk with those. What if a stock suddenly jumps 150% on takeover news? Then you're totally fucked I'd totally freak out when scalping individual stocks myself. If you're scalping I don't see how protection can do anything but hurt your bottom line. I thought the idea of scalping was to take very small movements anyway? To be honest if you are asking these questions I wouldn't even begin to think about trading live...especially not scalping.
i am already trading futures , i am not talking about stocks ... as a scalper i look for small movements but again i do it many times a day , and there is no guarantee nothing will happen while i am in a trade ... Anyway this is hypothetical question only , i wanted to know if daytraders protect themselves ...
Would it help if someone that has watched the charts for over 16 years tells you to stop scalping them and move to slower charts?