Unrealistic Expectations
The guerilla profile on small trade capital is not recommended. Retail pip
spreads, an occasional reversal, ballooning pip spreads on news, and inability to
execute instantly are all reasons leading to failure.
The position profile on small capital is not recommended. The risk for
the small trader staying over sessions is very high.
You can’t have it all: Don’t expect to both hit a high percentage of winning
trades (50 percent or more) and also use very close stops (10 pips) and/or
high-ratio risk/reward parameters (5:1 or more).
As you adopt new market pairs and crosses to trade, you will find with experience
that some markets do require money management parameter adjustments.
However, if a pair takes you out of your trading profile, perhaps it is
better to seek another opportunity.
I talk about using this information in Parts 3 and 4. For now, we are
happy to just add the basics to your codex.
The guerilla profile on small trade capital is not recommended. Retail pip
spreads, an occasional reversal, ballooning pip spreads on news, and inability to
execute instantly are all reasons leading to failure.
The position profile on small capital is not recommended. The risk for
the small trader staying over sessions is very high.
You can’t have it all: Don’t expect to both hit a high percentage of winning
trades (50 percent or more) and also use very close stops (10 pips) and/or
high-ratio risk/reward parameters (5:1 or more).
As you adopt new market pairs and crosses to trade, you will find with experience
that some markets do require money management parameter adjustments.
However, if a pair takes you out of your trading profile, perhaps it is
better to seek another opportunity.
I talk about using this information in Parts 3 and 4. For now, we are
happy to just add the basics to your codex.
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