A professional trader caps daily losses at a fixed percentage, like 2%, by taking many small scalp trades and stopping early when a few hit stop-losses. Individual trades risk more, but the daily total stays controlled.
You build your position with multiple scalps. And this means that when the market condition is favorable to you, you make a lot of money. When the market condition is bad, you take the first two or three stop loss and you are out one trade the next day, everything covered. Like, I have a maximum stop loss for the day, like in percentage term, that is 2%. So when I say to people, this day, I took eight stop loss, I only lost 2%. That's what they don't understand. They see that the time, maybe they are risking 3% per stop loss. Of course it's a lot, but that's not how you deal with risk management.
