There is nothing wrong with taking small pips multiple times as long as you manage your positions as the market progresses.
In hindsight, it is easy to say that taking “5 pips in 10 shots” is viable, but in real-time it is impossible to predict market movements. Moreover, taking small pips usually means looking at lower time frames like M15, M5 or even M1. In such short time periods, like 15, 5 or 1-minute time frames, it’s difficult to assess what the next candles will look like.
Prices can fluctuate wildly in lower time frames. How would you handle it if prices went against your position? What would you do? Would you close or hold your position? It is easy to say you would hold your position when there is no pressure, but in real-time and with real money, it isn’t easy. Where would you place your stop-loss? Would you place a 5 pips stop-loss? A stop-loss that is too tight will not serve its purpose. The market will barely sneeze before your stop-loss is hit and you get taken out. Will you enter again and shoot for another 5 pips? These are just some of the questions that could confound you.
What you are trying to do is called scalping and there are successful scalpers around. If you search the Internet, you could find trading methods that are suitable for scalping. But a word of caution – scalping is not easy and could be tiring since you need to watch charts frequently. Traders who have years of experience in the market usually use scalping.
Whatever you plan on, make sure you document it in your trading plan. In any trading strategy, it is important to have consistent execution and proper management.
To your success as a profitable trader,
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