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so let say our target is 20 pips perday = so 20 pips x 5 day = 100 pips but what about stop loss........according to general maney management risk and reward muast be at least 1: 1.5 or 1:2 meaning if ur target is 20 pips ur risk=sl mush be 10 pips. buy u know 10 pips will always hit. if we put 40 pips for instant for sl. let say 5 days we trade, 3 win = 20 pips x 3 = 60 pips and two loss = 40 pips x 2 = 80 pips. profit net is 60 pips - 80 pips = - 20 pips. in long run our capital will decrease. just open for discussion
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yes that is one way you can put it to make smaller pip targets look ugly...
! on a mnore serious note i agree with you 100%! although i don't persoanlly use an SL but still the stop is running in my mind and i never allow a postion to get close to 50% of my profit target.