Quote from marketsurfer:
I thought even the best traders lose most of the time, just that the wins are way bigger than the losses.
surf
I will repeat once again: I am a SCALPER. Not in the market maker sense of buying the bid, selling the ask a thousand times a day, rather in the retail trader sense of small profits based on price action momentum (with occasional big runners out of nowhere).
Here is a pretty darn clear definition of what I do (I removed the word "Forex" as this was from a Forex site and the concept applies to anything you trade):
"Scalping is based on an assumption that most...patterns will maintain the first stage of a movement that will move in the desired direction for a brief time, but where it goes from there is uncertain. Some of the...trends will cease to advance and others will continue. A scalper intends to take as many small profits as possible, not allowing them to evaporate. Such an approach is the opposite of the "let your profits run" mindset, which attempts to optimize positive trading results by increasing the size of winning trades while letting others reverse. Scalping achieves results by increasing the number of winning trades and sacrificing the size of the wins. It's not uncommon for a trader of a longer time frame to achieve positive results by winning only half or even less of his or her trades - it's just that the wins are much bigger than the losses.
A successful scalper, however, will have a much higher ratio of winning trades versus losing ones while keeping profits roughly equal to or slightly higher than losses. Practically any trading system, based on particular setups, can be used for the purposes of scalping. In this regard, scalping can be seen as a kind of method of risk management. Basically any trade can be turned into a scalp by taking a profit near the 1:1 risk/reward ratio. This means that the size of profit taken equals the size of a stop dictated by the setup."
My average R:R is now greater than 1:1 because I researched and implemented a method of entry that allows for that. I also have rules regarding moving my stop to break even. If I count break even trades as losers, my win rate is actually rather ordinary, but if you remove break even trades, my win rate is pretty high, which you'd expect from a scalper.

