Wednesday, October 30, 2013

Risk to Reward

I often read and hear about different perspectives on this topic. On one extreme we have scalpers and on the other we have position trading.

My opinion at least at this stage of my development is "why scalp" if your a retail trader. If trading is a business and 1 lot is your product. Risk at 10 ticks (100 dollar product) and your reward is less then 10 ticks. You won't be in business for long.

But on the other side I can see a scalpers POV. It may have to do with there psychology more then having a high win ratio. Taking heat on a positive trade churns my stomach. And for many this plays tricks on your trading plan. But it's part of business.

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