16th May scalping session

I must say I had a pretty good day , everything went beyond expectations: 49 pips for 10 trades. If there is one thing I look very closely, it is the average win and loss percentage.I had a 5.4 pips / trade winning average which is higher than the usual 1 or 2 pips/trade.

It's quite simple : you must strive to have the winning average close or higher than the average loss, or your win/loss ratio will have to be above 50 %. When scalping, my win/loss ratio is around 65/70 % which allows my winning average to be slightly below my loss average, though it is not an optimum situation.

In any case, I will do everything to avoid having any loss higher than 7 pips, otherwise it takes too long to get back the loss ( remember: if your average win is 1 or 2 pips, you need 4 to 7 winning trades just to recover this loss: allowing a greater loss is not good and put strains on your trading).

Cutting early losses makes sense because if you have a good knowledge of your trading statistics, a 7 pips loss will not affect your confidence since you have no doubt you will recover this without taking any additional risk. You just let the statistics work for you. The first lesson I learnt is that a trader that can't cut a loss will not make it at trading forex. You just can't think twice or hope , or wish that the trade will recover: at minus 7, I cut the trade. You wait two more seconds and the score is minus 10 then minus 15 . Wrong bet.