MoneyTec 2.0 - Online Forex Traders & Brokers Social Networking Community » Trading Talk » Money & Risk Management

[Miked23]

i'm trading right now through fxcm with no stops. Obviously i take a little more damage than I like at times, but all and all i'm doing ok. Stops in theory sound great, I want to risk 35 pips per trade. Ok so it hits I get out. I keep hearing stories about imaginary spikes in the market knocking people out of trades, and you sign a waiver to the clearing firm saying THESE TRADES WILL PROBABLY NOT REALLY GET PLACED IN THE MARKET. I mean is there any course of action for getting stomped out by an imaginary stop, when i'm working with less than 100 k????

[jeff15]

Yes I use stop loss and according to me fundamentally the stop loss mitigates a convinced gauge of peril while maximizing your venture returns. Anything that mitigates speculation risk at the same time as allowing a depositor to create potentially explosive returns is a huge thing.

[Miked23]

I absolutely agree. My worry is the are the spikes legit. One "spike" in the market can knock you out of something that has huge potential. When i'm in the green I can throw in a trailing stop without too much worry. I've heard some of the biggest clearing firms are guilty of this. Who do you trade with if you don't mind me asking

[Trader Rich]

Spike or no spike, stop loss is always needed to protect your account when you made a losing trade. One of my day trading rules is to preserve precious capital. If your timing is right, a 35-pip stop loss is good to let you ride with most of your winners.

[pinalli]

The trader can restrict his future losses by placing an order instructing the trading platform to buy or sell, the moment the market drops below the previously established price.

Placing a trailing stop order means that as the market rises, the stop will follow the trend, setting itself higher than the trader's initial investment. This exclusive tool guarantees that the trader will always keep a position higher than the original, thus fixing his profits and restricting his losses automatically.

[arfx2]

Take care trailing stop executes from trader's terminal. If you want to use it you should keep your computer on.

[forexmegadroid]

You must trust stop more than you trust yourself..

Your stop doesn't make you bankrupt...but you can do it to yourself...

Anyway to put good stops, you have to use Candlestick...

look for those spikes and use them as your stoploss. The spikes are very effective and normally price will not reach beyond 5-10 pips unless it is a trend reversal...

[arfx2]

I'm here again:

Spikes are reality, not imaginary. big fund manager companies make waves to push price to important Stop loss levels, then a lot of open positions are stopped out and wave is escalated.

and one thing about using stop loss:
There is no usage if you change your stop loss when price reaches that level. SL is good if you keep it.

[iorek]

I think you're really asking: can I trust myself? You're choosing the stop, the stop isn't choosing itself. Trust your objective judgment in choosing a stop to keep a risk-reward ratio and consistent account value when the losses set in.

[jeff15]

Stop Loss is not a favorite tool for many traders as it requires taking necessary losses, calculate risks and foresee price turns. It's particularly surprising because those traders who do use stop loss orders invariably make much more money in the long run than those who don't

[Lhar_moneytec]

Originally Posted by pinalli

The trader can restrict his future losses by placing an order instructing the trading platform to buy or sell, the moment the market drops below the previously established price.

Placing a trailing stop order means that as the market rises, the stop will follow the trend, setting itself higher than the trader's initial investment. This exclusive tool guarantees that the trader will always keep a position higher than the original, thus fixing his profits and restricting his losses automatically.

What is the difference of stop and limit?

[CashSplash]

Of course you can, stop order is there to save you from losing money, or at least control your loses.

best wishes

[easy.street]

I have read a lot about this phenomenon too. I have come across some price action charts posted on other forums that are HIGHLY suspicious as well, like 10 pip breaks to a resistance point within a few second interval that, surprise, don't show up on the corresponding Bloomberg market data chart when compared.

If you are live trading I would suggest avoiding the use of stops, and if you are trading with EAs I would suggest you look into triggers rather than stops placed with the orders sent to your broker.

[iorek]

Can you trust yourself? Are you willing to stake enormous amounts of your equity for gains? Are you willing to be wiped out by one bad trade because you were waiting for it to turn around and just "knew" it would be a winner?

[ThomasTallis]

I have fully trust on myself. It is necessary for this. On the other hand we are talking about Risk and money. Risk is there where money have.











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