People think it is easier to say risk 50 pips and make 10, but this is just plain wrong. Good trading is about the identification of firstly trend, then the identification of entry points. If you decided to trade a H4 chart, using the right method you can identify reversal points to within 40 pips then you could, then drop to the M5 chart, and try to enter with an even tighter stop. What you have then done is allowed the benefit of a H4 move, but the stop of a 5 min chart. So as volatility is related to the time frame. You allow yourself the option take make a huge profit compared to the stop you use.
I know that I use to try to enter the market with a 2 pip stop and a 20 pip stop, that always ended badly. If you cannot read the market then don't trade it. Look at any chart no indicators and ask yourself what is price up to. Where is it going, where might it stop. If you cannot answer the questions then you should not be trading. Someone asked me last week why I was not trading, I could not figure the market out, so I did nothing. Then when I saw an opportunity I took it.
Look for opportunities.
I know that I use to try to enter the market with a 2 pip stop and a 20 pip stop, that always ended badly. If you cannot read the market then don't trade it. Look at any chart no indicators and ask yourself what is price up to. Where is it going, where might it stop. If you cannot answer the questions then you should not be trading. Someone asked me last week why I was not trading, I could not figure the market out, so I did nothing. Then when I saw an opportunity I took it.
Look for opportunities.