Ten pips might sound like a tight stop and it certainly would be on the higher time frames but at the 5 minute level it is quite a substantial move to go against us when we trade the appropriate signals.
The key here is these "appropriate signals" We have to wait patiently for them and then react to them without hardly thinking of the possibility of loss knowing that loss is only a minor event in the scheme of things.
Here below is an example of what happens when things go wrong...
We may have mistakenly gone long against the trend and as a consequence got stopped out.
At the stop out we again enter long on another bull div and get our money back.
This serves to show how trading the signals and limiting the losses is well worth the waiting time.
The key here is these "appropriate signals" We have to wait patiently for them and then react to them without hardly thinking of the possibility of loss knowing that loss is only a minor event in the scheme of things.
Here below is an example of what happens when things go wrong...
We may have mistakenly gone long against the trend and as a consequence got stopped out.
At the stop out we again enter long on another bull div and get our money back.
This serves to show how trading the signals and limiting the losses is well worth the waiting time.
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