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[Luke101]

I have been hearing alot about reverse. What exactly is it? The demo account i have with www.forex.com dont have it. where can I find it?

[Luke101]

Let me rephrase that. What is a "Stop and Reverse"?
Thanx

[KingCreole]

Originally Posted by Luke101

Let me rephrase that. What is a "Stop and Reverse"?
Thanx

Very few forex trading platforms have that type of execution order, so you have to be creative.
Example: You are long one euro lot in profit.
You set your limit price as your exit.
Only difference is that you exit with
two lots, hence reversed one lot.

Regards MoneyQuest
Moneyquest_2005@yahoo.com

[Luke101]

HMM...still dont understand..do you meam set my limit as my stop loss?

[KingCreole]

Originally Posted by Luke101

HMM...still dont understand..do you meam set my limit as my stop loss?

As a trader, you should have a predermined price as your exit, just as you do for your entry. Lets say it is a fibonacci number of "34".
Example: Entry Euro long 1 lot @12340 stop
Limit(exit) Euro 2 lots @12374(when executed)
You are now out of long + 34 pips
and short 1 lot @ 12374
Regards MQ

[Luke101]

OK..this is what im getting from it..

Buy at 340
Sell at 374

Then Buy again at 374?
or Sell again at 374?

sorry i am a beginnner at forex just trying to understand!!

[Luke101]

OR

Limit at 340
Limit(exit) at 374

then

Limit at 374
Limit(exit) 400

HMMM is this it

[honto]

Here's another way to say it. If you buy something, you want it to go up, right? Let's say you bought one lot of something. If whatever you bought doesn't go up, when you get out, to protect your money, you have to sell one lot. However, if you think it's going down hard, you can sell more than one. Now you're in the market, hoping it's going to go down even more so you can profit from the move.

Buy 1--please go higher.

It goes lower.

Sell 2--please go lower.

That's a stop and reverse.

[fairwind]

Hi Luke,

Re: "...I have been hearing alot about stop and reverse. What exactly is it? The demo account i have with www.forex.com dont have it. where can I find it?..."

My understanding of the phrase Stop And Reverse, usually abbreviated to SAR, is the name given to an indicator developed by Welles Wilder who used it as an exit strategy, I believe. It is sometimes called PSAR or PARSAR or parabolic SAR.

Most chart packages have it as a standard indicator.
I may be off course here with your query but there you go....

[Truville]

Originally Posted by Luke101

sorry i am a beginnner at forex just trying to understand!!

Luke, let me suggest something. It's been my experience that for new traders, "buy" and "sell" are difficult concepts. People think if you "sell" something, you no longer own it, and it doesn't matter what happens to it.

Well, in forex, it does matter. That is why I suggest you avoid terms like "buy" and "sell", and instead use the terms long, short, limit, and stop.

Long means you want it to go up. Short means you want it to go down. A limit is an exit at profit. A stop is an exit at loss. A stop and reverse means it hits your stop for a loss, but you enter at that price in hopes it will continue in that direction.

Limit 350.
Long at 300.
Stop and Reverse 250.
Limit 200.

[knivynot]

Hi , I am a new (Paper) Trader to, and I get it.
Thanks I learnt something new yet again..

Buy 1 lot at 1.2300 , then place an order to sell 2 lots at 1.2325... (hoping the price will turn at 1.2325 then take profit on one lot at 1.2300 again.
I suppose it also works as a loss reverser.

Thanks for the thread.

[faure]

just to clear something up.
a limit buy order, for instance, is an order to buy, set below the current market price
a limit sell order is an order above the current price.
conversely a stop buy order is an order to buy above the current price
a stop sell orderis an order to sell below the current price

[fdisk]

FX Solutions has a feature where if the trade go south on you, you can reverse that trade. Example you are trading the GBP/USD and you get into a buy and cable goes south on you can reverse your position. Nice feature but bad idea. One should never chase a trade. If you get into a trade and it goes south cut you losses and be more careful next time because you should of never got into that trade in the first place.

[mysteri]

so then i suppose this is where the discpline comes in to hold ur ground? sounds good to me. i would hazard a guess that even the "best" system isn't 100%, or else we'd all be on it. so discplining urself to not chase trades and accepting/expecting some times of loss is part of the process. it would be worth it for me if a had a system that was profitable like 70% of the time i suppose.(thanx in advance for any corrections btw).

[ap]

Luke,

You will have shortly your "account manager" asking you to fill forms and transfer money....

before you agree, do something for yourself.

Read some books!

ap.