200 pip stop loss - 10 pip profit?

Do you think it would be wise to trade with the strategy that has 10 pips target and stop loss be set at 200 pips. I think this strategy one can take advantage of forex up and down and may make profit many times before there triggering stop loss as probability of stop loss triggering is 1/20th of hitting target.

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Originally Posted by yogesh

Do you think it would be wise to trade with the strategy that has 10 pips target and stop loss be set at 200 pips. I think this strategy one can take advantage of forex up and down and may make profit many times before there triggering stop loss as probability of stop loss triggering is 1/20th of hitting target.

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hahah thik ha es ko main claver ya wise trading kahoun ga take profit main app scalper ban jatey ho or stop loss app ne day trade wala use kiya ha thik ha 10 points koi pair up to ja sakta ha par 200 point ek sath down nahi ho sakta

I have been coming across many traders with such strategy and I feel it might be a good strategy but before I trade with this strategy in real account I want to practice in demo account first and see the results and then shift to real account.

Very clever mind. The movement of 10 pips up is easy and you could achieve your target easily. But doing this you also have great analysis. Sometimes it may also happens the market go totally go against you and rapidly moves to Stop loss ( but it will happens rarely , you can also have alternative plans for this).

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Originally Posted by atif58

Very clever mind. The movement of 10 pips up is easy and you could achieve your target easily. But doing this you also have great analysis. Sometimes it may also happens the market go totally go against you and rapidly moves to Stop loss ( but it will happens rarely , you can also have alternative plans for this).

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i don't think its a wise decision to take a 200 pips stop loss for only 10. the risk reward ratio is 20:1. so if only one of your trade hit the stop loss. then need another 20 profitable trade only to minimize the loss. i think 50 SL and 20Tp is good.

Do not risk over 2% of your balance. For example, if your personal balance is 1000$ and you enter a 10,000$ deal (10:1 leverage), the maximal SL point will be 20 Pips which equal 20$ (2% of 1000$) ok ;) so i promise you will stay safe, but avoid this method if you will use :woo:

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Originally Posted by realfun07

I have been coming across many traders with such strategy and I feel it might be a good strategy but before I trade with this strategy in real account I want to practice in demo account first and see the results and then shift to real account.

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I am agree with you mate, The propose of Demo account is to get out self confidence that this platform is good or not for us.

Its always a good idea to keep the loss in mind, and its even better to get the loss to a minimum level. never expose your trading to bigger and irrecoverable losses and do not be too much optimistic.

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Originally Posted by ahmedlinkers

Its always a good idea to keep the loss in mind, and its even better to get the loss to a minimum level. never expose your trading to bigger and irrecoverable losses and do not be too much optimistic.

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agreed man, this is what we have to keep in our mind while we are trading.

I have been coming across many traders with such strategy and I feel it might be a good strategy but before I trade with this strategy in real account I want to practice in demo account first and see the results and then shift to real account.