I consider trading a 5 minute chart as day trading, i am not talking about hourly charts. A lot of 5 minute NQ bars these days have a range of 50 points or more. So if i have a strategy that buys or sells the reversal after fake breakouts for example and my stop is the previous high or low i have no choice but to go for 50 or 50+ points in stop size.
It is not a problem.If your previous stop is 25 points,and now it is 50 points, reduce your trade size to half,everything will be the same.
Are you getting regularly 300+ points with that kind of a stop? I enter with the right 1 min candle usually regardless of whether it's the 5 or 15 min trend, so I get the move at the exact 1 minute it is reversing. Which means my stop is typically no more than 20-30 points. The 50 point candles tend to come in the middle of these moves rather than at the start.
%% I agree \partly. BUT since he is a new derivatives trader/inVestor\ prepare for more than 10 losses. SO if he made an error + may have in MAY\LOL\ sounds like No MACnub understated it. SO like SCHW warns on derivatives ''NOT suitable for all investors''[Or traders] FOR sure cut back when losing\ unless one has real low % hit rate+ most turtles never had a HI hit rate...........................................................................................
I enter all my trades with a 5 points stop ES. I almost never have problems to be stopped out short after entering. All depends on where/when you enter.
I would not recommend the INDEX futures for a Mini version with anything less than 30K. 50K preferred, 100K more realistic for anyone serious. The reason is either you are profitable long term or not. If you are, you scale. If you are not, you will lose enough, to be cut out of trading prematurely. Otherwise stay on paper.