Broker X can offer a Minor and simplistic as they may seem, in the long run they can seriously tip the scales in our favor. Any articles, systems, strategies, reviews, ratings, news, research, analyses, prices or other information contained on this website, by Aboutcurrency.
Whether you are an individual trader , a money manager , or even a brokerage - the right tools matter. Will keep an eye on the market for possible trading setups on these pairs. The title of our blog discussion already prompted reaction from our traders… Paul admits that if using stops makes him a sissy then he must be so when it comes to trading.
First, there is a technical argument. Some trading platforms suffer technical problems from time to time, and as a result price sometimes displays huge spikes of hundreds and sometimes even thousands of pips up or down in only a few seconds. Of course, any stops at any distance in the direction of the spike will be wiped out instantaneously, and the trader will get his trade closed for no reason, while all the other platforms perform without any problem.
I suppose we can all understand that such a situation could make any of us mad…. Some traders believe that not using a stop at all will protect them from such situations. If their trading balance is big enough compared to their positions in the market, they might be right, too… These spikes are essentially errors, and they are corrected in a matter of seconds, after which price goes back to its normal movement. Our traders may be right inasmuch their trades would probably not be stopped out by such rare events.
However, I personally experienced this problem with all the brokers I have worked with and I can say that even if my stops were hit on such an erroneous spike, all positions were eventually rolled back and I got out of the situation with no harm or loss of any kind in my account. Once I was even credited an unrealized profit just because without the spike I might have reached the target of my trade!
Of course, these highly improbable events are still possible and your broker may not be such a nice guy, so there is a possibility that you lose something after such a problem after all… Nevertheless, this is definitely not an argument in favor of not using stops when trading, due to some very sensible reasons: Then, there is the argument of stop hunters… I must admit I personally consider this to be a point to be taken seriously, as all of us know there are many stop loss hunters out there, and placing our stops close to the market price will give them the tools they need to fight individual traders and win the battle.
Especially brokers which act as market makers can manipulate price action in such a way that stops have a high probability to be hit if they stand around certain key levels… Basically, what the neckbreakers say is that they do not want their money to go to such sharks, and they prefer to keep their stops mental. My answer to all this is yes, I admit such things may happen, and as much as that might bother us it is not really in our power to change market mechanisms and realities that have been there for decades… However, I would like to draw attention to 2 important points: We must have heard this dilemma a thousand times: Can that make us rich overnight without any effort, or will that simple trade that we took and finally went wrong eat up our entire trading account because we failed to place a stop?
These are all questions we will try to find an answer to in what follows. We have seen in our previous posts that there are many dangers awaiting those traders who use high leverage when trading this volatile and unpredictable market. If leverage is dangerous, then using a very small one — or none — should protect a trader against any danger resulting from trading large positions, right? Broker X can offer a When we are talking about leverage in its technical aspect, there is nothing wrong with using the highest leverage allowed by the broker.
It is not the use of this instrument per se that places us in a risky situation, and in what follows we will explain why. The first aspect of our leverage myth refers to the belief that a high leverage can work in favor of the trader, and even compensate for losses in periods when trading does not give the expected results.
At the same time the RoC is giving a big bear divergence, all this on the background of a bearish monthly chart. Could the longer-term bear trend be resumed here? This week might be the key to this question…. What is particularly interesting for me are 3 points:.
The same daily candle closes nicely below the D1 20MA which is now a resistance. The previous triple top res. This should provide at least bullish reactions if not even a bullish wave but in case this area is easily broken down by the bears the mid-term bear scenario I have in mind will receive a lot of backup. On the other hand, if this push is just W1 of a newly emerged bearish impulse then everything could be easily explained in bearish language.
Finally, the H4 picture on my chart is bearish since friday last week. Longs for me become interesting only above 1. On the large charts we seem trapped between the key previous res.
An indecisive doji right the 60MA on D1 further increases the sentiment of balance, which in my opinion favors a short-term retracement up. While the bigger picture is now losing its bullishness but technically still in an ascending formation , shorter-term we saw the development of an impulsive bearish wave yesterday on GBPJPY.
The pic on M30 chart looks like a retracement is due, as we currently have all the necessary ingredients:. Once this level is taken out the pattern is invalidated. Just the plain facts, as always:. First, my H4 indicators are turning back down indicating correction is near or already under way.
Im not thinking of a big drop, just a brief touch-and-go in the 1. Finally, while the M15 chart remains a clear bull so far, M5 gives a possible low-risk short opportunity I will try to take later in London session, if confirmed. Once this happens, an opposite M5 crossover bear would be my signal to short with tight stop not more than 30 pips on the current setup , target in the lower 1. On H4 my indicators are turning flat, with slight bearish bias indicating correction but not necessarily reversal back to longs.
We are sitting on a key H4 supporting TL 1. I will be playing the retracement scenario today, buying small for targets up to 1. The MA system on M15 gave me the entry 1. Elliott-wave-wise I am seeing this move as a flat correction started 1.
As the market is slowly going towards a breakout point in most majors it spends most of the time in a range, but not ALL the time! Mihai Marinescu holds a BA in Political Science, and before becoming active in the investment sector worked for almost 3 years as web designer and IT trainer for his own small company.
He thinks that trading has always been somewhere at the back of his head, so when he first heard about Forex he knew that this is where he would find the professional satisfaction and challenge he was looking for. Learning the ABC of trading was fast, due to intense interest to aquire new information and the presence of 2 mentors, which both shaped his way of thinking and taught him how to survive as a trader.
He started his own website - www. He participated with articles and content to websites such as: He has known both sunny and cloudy days, but he always knew that it is mainly patience, education and discipline who can make a good trader. One cannot go around saying or doing whatever he wants, as there is always a certain responsibility involved", says Mihai.
His market philosophy is quite simple, as he had the chance to experience first-hand many of the obstacles that await newbies: Be smart, be patient, ask questions and test, again and again. Don't believe everything you hear, but don't reject it either: No one will be able to prove you wrong once the market and your own results prove you right". After 3 years of active trading, he got involved in the FXInstructor project as he believes that education is the fastest way to master the market. If they are successful, we will be successful - there is no marketing method more efficient than this in the long run".
With hotComm you will be able to hear our expert comments dissecting a trade while they show you the graphic resources and the steps they use in their daily trading.
This is a fully collaborative tool, so don't hesitate, interaction will be the key to success, by sending your live questions to the experts. Posted by majeed at 4:
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