This is principially true, but everybody should be aware that the decision for a broker respectively his spread is even more important! Some brokers even lie about their real spread ,FXCM had spreads of 6-8 pips and more(if rather 'exotic' currency pairs) but never admitted more than 2.5
So, to make a profit you need to make MORE than 8 pips (6 for the spread and 2 for their fees). In the example above, one winning trade will 'carry' 4 or 5 losing trades with tight stops. But if you have a broker like FXCM ,you pay 40 pips just for spread and fees. The trades must be able to 'breathe', that means a too tight stop will almost always be activated. But even if we imagine a 10 pip stop loss, we got 5x10=50 pips loss+40 pips for spread and fees=90 pips +8 pips spread&fee for the winning trade=98 pips.
Or in other words, that winning trade must be 100 pips profit to cover the losses. Real gain = Nothing.
And a 10 pips stop loss in Forex trading is rather a joke than a serious idea. I've never used less than 20 and even that was often too tight already. If we take 20 pips as stop loss, the winning trade must generate now 148 pips profit to even the losses out.
