What is a “stop hunter”, and what is their MO??
Thanx for the tips, mp.
Potaire
simplest explanation is a broker who goes looking for those who have set stop losses too tightly, and when they come close to the market price, there will be a sudden spike down to “grab them” and close your trade, giving the desk trader the right to pound his chest, jump up and down and talk about all the jerks he/she did that to today !
the primary, but not only reason, i dont use stops !
mp
It’s a good reason for a non use of S/L, but I still don’t feel confident to trade without SL I guess you’re a price action trader. I am trying to develop the instinct to enter a trade without SL but I guess I need more experience to do that.
while i state it and a tremendous number of traders work the same way, I DO NOT advise newbs and/or the nearly new to go out and do it UNTIL you can unfailingly pick a trend and set a correct tp point each and every time for the END of that trend, whatever timeframe you choose to trade in !
as a “method”, it serves me well and certainly avoids ANY chance of having one “picked off”, but it takes experience (and often nerve) and you MUST be absolutely sure of your direction and profit points ---- its really a graduate school exercise, so you can watch it, but dont do it until a LONG time has passed !
enjoy and trade well
mp
In your opinion, what would be considered a tight stop loss? Since we know the brokers do not have the power to change trends, how big of a swing could they theoretically generate against us?
Do read the fine print on FXCM. They DO operate a trading desk for micro accounts. FXCM’s non-dealing desk platform is only for mini and standard accounts. If I were you I would upgrade to a mini account and get rid of the traps involved in a dealing desk. The system is geared to put all the disadvantages on the side of newbies: micro accounts, higher leverege, dealing desks, less required capital, less experience, you name it. Get rid of as many of those disadvantages as possible. How? At least open a mini non-dealing desk account instead of the micro. You’ll have more capital, less leverage, and no broker interference with your trades, hence less risk all in all. Then, of course, practice a lot and learn money management. Keep your losses short and your profits running.
PS - I trade with FXCM for quite a while, and quite happily. Started with a mini account, now on a standard.
ahh pukey – you ask that question of someone who avoids the whole problem by NOT using stops — LOL !!!
if one is to define “trend” as a price that does NOT break the lowest low or “support” then one should start looking in that area and BELOW(and the LRC WILL show you where !) to set a stop loss, i would imagine ---- even that, if placed TOO closely to the bottom trend line may not prevent a fast grab as in whats happening in GU at this very minute — they wanted the price DOWN so they have upside room to move, and they DROPPED the price 170 pips or so to get it down quickly.
WHERE would you have placed a stop if you were long ???
since previous support was at 1.4470 and the currency spiked down to 4506 or so, i guess that would have worked, but its a HECK of a lot of pips DOWN from the upside move, is it not ?
and its still going down at this second !
but in lieu of anything else, i guess thats what we deal with in these days of wide average candle ranges !
enjoy and trade well
mp
Alot of nice insights MP. Those little tidbits of info can come in really handy for small profit pickings.
I think I get it, MP. I should just try to keep my stop beyond the support or resistance of the current trend (shi channel, LRC) which shouldn’t be a problem since I have been setting buy/sell stops/limits on the bounce back anyway. Am I stepping in what your putting down? Am I smelling your BBQ from my yard?
LOL, who’s got BBQ? I want some!!
BBQ IT IS !!!
washed down with dom perignon ---- after all, we ARE capitalists and masters of the universe !
mp
Can I still be a proper capitalist if I prefer beer and whiskey?
oh golly
PLEASE dont advertise that fact !
dear G-D — WHAT is wrong with the younger generation ??
mp
Yes I guess a non-stop use is not recommendable for a newbie, at least until they get to develop proper knowledge or proper instinct should I say.