Stop losses - getting stopped out after trade goes into profit

Beginner Questions
38

Doh I replying but it doesnā€™t seem to show up. Germans always deny rumors but itā€™s dow jones reporting it, thatā€™s good enough for traders. Theyā€™re still denying EFSF buying itā€™s own bonds to cover short-fall.

Hmm if it was short-covering would it drop down back and even below, to 1.3500? Donā€™t think so and on a friday.

As for me shorting, when I first read his post I thought he was talking about thursday, I was making a point that if he thinks price should go down and it moves opposite then hoping it goes back down again is careless, I was talking in general.

Why the spike exhaustion at 1.3600? Got contained there and exhausted :stuck_out_tongue: , once it got comfortably contained down it went.

39

Hi Halba

I am a newbie like yourself ( been trading live now for 6 months ) so Iā€™m by no means the most experienced person to offer any advice. But this is my 2 cents worth anyway.

If , as a newbie, I had placed a trade and it went 25-30 pips up almost straight away, as you said, I would either have just taken the profit and closed the trade, regardless of what my target was. Or I would at least have moved my stop to Break Even at that time.

Regardless of your target, 25-30 pips is a good result for a trade. If your target was +200 pips, and your trade was showing +100 pips, would you leave it to see if it gets to the +200 without managing it in some way ? I wouldnā€™t.

We hear so much advice about doing this and doing that, but at the end of the day this is YOUR account and it is YOU that has to keep it alive. I would be delighted with a 25-30 pip profit, especially if it had moved that way so soon after I placed the trade.

Keep yourself, or I should say your account, alive by managing it. Next time a trade is that much in profit, you could do much worse than just put the money in the bank.

My 2 cents. :slight_smile:

HoG

40

Ehm, just saying. Does the flaming solve any issue for some? :smiley:

Donā€™t throw stones to me now please! :51:

What you can see if you glue long enough with ANY chart:

If the sentiment is bullish and a bullish news comes out, the price rockets.

If the sentiment is bearish and a bullish news comes out, the price keeps at level.

If the sentiment is bullish and bearish news comes out, the price is flat as well.

If the sentiment is bearish and bearish news comes out, price drops like rocks.

You can combine any other variables like relative prices regarding in value to it and get a better picture.

So yes, news can ā€œigniteā€ a move, but almost never in isolation. It does just deliver the acceleration for the move in the direction what was planned before the news comes out. More often than not. Why? Because most traders reacting to news are dumb money traders. They are panicking and do the dirty work for those who work with their long term edge. This is just a broad simplified model of my own reception. For sure the market does something else every now and then.

However, that is evidence, that news are not a factor in driving anything in the markets with highest importance. There are news free Mondays where prices rocket or drop as well. Then there are news coming out and price is flat.

Plus then, who is smart money? Smart money is those who make a lot of money in the markets, and I give any warranty that those with mechanical systems like for instance the turtles didnā€™t trade by news. Those who did in their group performed worst!

I am not saying news are completely unimportant, but itā€™s just one piece of the picture and itā€™s definitely not the most important piece. News are made. They almost never come out of nowhere for a random reason. Those who use news in isolation for their trading could be successful, but I guess itā€™s really a bumpy way to make money. Because you trade almost ever with the herd. Iā€™m not speaking regarding those who use technicals to fade the news.

41

Look ā€˜Buddyā€™ Iā€™ve read back through my posts and frankly I canā€™t see anything in them that is ā€˜aggressiveā€™ or ā€˜rudeā€™? The only thing that I can think of that might be construed as anything vaguely in this ball park was my opening post on this thread which beganā€¦ ā€˜This is completely wrong, sorry it just isā€™ā€¦ That was a statement of opinion, neither threatening nor rude. Now this might be a simple matter of ā€˜lost in translationā€™ across the pondā€¦ I donā€™t know. But just in case it was I apologised to you shortly afterwards but your still banging on about it like I trolled you? :58: Whatever you think of my opinion and trading is fine but it horrifies me to think you regard me as aggressive and rudeā€¦ Iā€™m a Brit rightā€¦ are we not universally regarded as polite and gentlemanly?

42

[QUOTE=Nerys;294852] well read through R-c comments they were very aggressive and insulting and guess what I ran out of patience.
/QUOTE]

I read, and re-read looking for any sign of ā€œaggressiveness, or insultsā€.

Didnā€™t find any, only found an opinion that differs from yours.

It took three whole posts to ā€œrun you out of patienceā€.
How do you make it through a day of trading?

Good luck with that!

43

ā€œThis is completely wrongā€¦ sorry it just ISā€ - a normal way would be to say, ā€œI have a different view on the subjectā€ because niether of us are wrong, just different methology although since you liked Buckscoder comment I am puzzled since he is saying opposite of what you were saying.

ā€œPearls before swineā€ - here youā€™re calling swine everybody who has a different opinion to you.

ā€œLOL!!! Tried the better part of two years and all I got was trolledā€¦ now donā€™t bother! Outstanding methodology and thread by the way.ā€ - Almost trolling and condescending reply.

ā€œSo what then pushed it up? If your saying news pushed it down? No worries, Iā€™m sure your right.ā€ - Another rude condescending reply.

ā€œSurely not? LOLā€ - condescending yet again.

Really when you call somebody swine thatā€™s taking things a bit too far isnā€™t it, buddy.

You did not apoligize shortly after, 4 comments is not shortly after.

And to think you started being so rude in the first place because of the difference in opinion is all more insulting. Just because your view differers from mine does not give you right to be a condescending pompous ***.

Especially since the whole conversation was lost in semantics, I am surprised you like Buckscoder because that was my point all along which seemed to have set you off.

44

Really I try very hard to be a neutrino in this ā€œdiscussionā€, lol. :slight_smile:

But Iā€™m not sure if we both are on the same page. My opinion is for sure my opinion and not RCs and not yours. Albeit my opinion is closer to that of RC and eremarkets than to yours. Just saying. So please let me out of your ā€œevidenceā€ seeking for who is right or wrong, lol.

I mean, I really try to avoid any nitpicking flames. Not to say flames in themself are moslty nitpicking. Now it goes to swines. I hope you trade with it successfully, lol. I mean, itā€™s just a saying. Donā€™t take everything to your heart please! Ole traders usually are mabye not for the tender hearted all the time, lol.

And now be all friendly together please. And donā€™t throw rocks to me now that I just was frank with my opinion. I love you all! No, not that way somebody might hope now, lol. :smiley:

Hey, tomorrow is another big pips day. Prepare and be happy! :slight_smile:

45

Well I apologised and in my last comment virtually did it againā€¦ there wonā€™t be a third! You have demonstrated in your numerous posts ā€˜Pearls before swineā€™ is an apt analogy on then some! I wonā€™t be taking any lessons in anti social behaviour from you anytime soon! LOL!!!

46

Frozen Pork Bellies

Are them a good buy or sell now btw.?

47

Hey Mr Buckscoder,

How are you doing?

Could you, please, explain to me how widening spread by broker can affect my open position? I tried to figure out by myself with no success. I ask you because you helped me a lot in the past and you have a knowledge in this things.

Thank you in advance

Best Regards

48

Hi pandras. Thanks and glad I could help you!

Hmm, Iā€™d say if they widen the spread it could hit your sl or tp earlier. Whatever is closer. Usually that is the sl, tho. :smiley:

No seriously, it can ONLY affect your sl. Because if you sell you get the ask as price and if you buy you get the bid as price for closing the order. :wink:

So, itā€™s always bad for you if the spread is widening.

49

R Carter buddy I wonā€™t be wasting time on your anymore, time will teach you.

50

well. that was fun! net time u guys should sell ticketsā€¦ beats reality TVā€¦thatsā€™ for sure

Jay

51

You knowā€¦ After spending 30 years as a trader for one of the worlds largest banks you would think that guy would know what the heck heā€™s talking aboutā€¦

I guess some people would take golf lessons from Tiger Woods and try to tell him how to improve his swing.

:smiley: :smiley:

52

Is it only bad then if my trade is going to the wrong direction?

53

Could also be for your disadvantage the other way. They move the target away from you. :16:

Example: You buy for an ask at x.

Target is 5 ticks up.

Spread was 1 tick.

Spread becomes 5 ticks widening bid and ask.

Now your target is related to the bid price. It was widened by 2 ticks. You need price to go 2 more ticks up than before. Thatā€™s 8 ticks away now. Your 5 ticks, the former bid of 1 tick lower plus the 2 more ticks for the wider spread.

Welcome in the world of certainty, fair play and quick bucks. :smiley:

Thatā€™s why I prefer ecn brokers with tighter spreads and a little commission. The commission is always the same and the spread is variable, but tighter than with any market maker. :slight_smile:

54

Thanks your reply. I am still looking for an ECN broker. I found a nice one but its deposit/withdrawal fees are very high compared to my amount I would like to start of.
I use Oanda now. I heard this broker sometimes widen its spread up to 20 pips I do not know it is true or not I have not experienced yet any excessive spread widening. (only from 1.2 to 2.5 on EURUSD and weekends spread is 10 pips, sundays 6 pips).

55

My pleasure! Well, Oanda is one of the better mms out there, so I wouldnā€™t worry too much. However, I heard they had issues with their mt4 platform lately. I wouldnā€™t care about the we[B]a[/B]kend spreads either, because its a weak end. No liqui. :wink:

However, 2.5 pips spread is not really small anymore. I have spreads with my ecn of 0.5 til 1.5 pips if not at the dead zone before the asian starts. Letz say it saves at least one trade with a 50 pips target for me thatā€™s a lot of money. Best of all I can also see the dom.

56

I love the limit order book. I hardly ever use it directly (though threw out an effective ā€œbluffā€ one time to push price into my target), and yet, I know a few things to look for and those seem to help me in those subtle but yet very powerful ways.

Edges on edges plus edges with edges for the win.

Jay

57

Same here. Works not all the time, but it can be another nice indicator if smart money is active or takes a lunch. :slight_smile: