I would like to know if those traders are trading with one broker only. One of my friend had some peculiar experience with one broker. (i am not naming any because forgot about the rules i read long ago lol)
He was trading and his trade was closed due to a spike. When he checked another broker platform he found out that the spike did not appear on that platform. I never traded with the brokers Razzy mentioned so can not say if the same case happening with those brokers as well.
Hi,
‘Spikes’ to happen from time to time at any broker (and my ‘time to time’ I mean VERY rarely as opposed to ‘the norm’). The question is: are they ‘legitimate spikes’ i.e. data errors or ‘bad ticks’ or are they ‘artificial spikes’ (for want of a better term) used for stop hunting. If the same ‘spike’ does not appear at other brokers (especially given the same trading platform e.g. MetaTrader) then there is a problem. An honest and reliable broker will reinstate the position (ideally this should be done without the trader even having to make the broker aware of the problem). If this was NOT the case with your friend then I’d strongly suggest that your friend look for an honest and reliable broker because if your friend’s broker is using ‘artificial spikes’ for stop hunting you can ‘bet your ar*e’ that’s not the ONLY ‘move’ that they will resort to. Other ‘moves’ to look out for are many many requotes, stop orders slipped way beyond what is reasonable or way beyond where the market has ever been, not being able to close out profitable positions without being requoted (normally more than once) but having no problem closing out losing positions. Stuff like that.
Regards,
Dale.
First I’m going to disagree with the cliche that, “Half the people win and half the people lose”. If we are all on the right side of the trade, we all win. If we are all on the wrong side, we all lose. Truth be known, all the bad traders lose, and all the good traders win.
Most people are lured by the false bait of all the money that can be made and is being made in trading. They want to just jump in, place trades, and then hope things work out, and then have a good time at the bank. You have to treat trading as if it is your own business with all the due diligence, because that is what it really is. No business will stand if business owners manage their business the same way many traders manage their trading. It’s these same people that blame the brokers for trading against them, slippage, high spreads, and you name it. The good traders just go about business, because it is just their job.
Being a good trader requires many hours of working for free and paying the price. It requires doing lots of demo trading in order to solidify a methodology.
Next, you have to develop solid margin management skills. You might have an excellent methodology, but if your position size is too high or you don’t have proper money management skills, then your goose is cooked, no matter how good your methodology is.
After you have had several months of profitable demo trading, then you might be ready to go as a trader. Now the test is you mental or emotional skills. Do you get to up on a good trade, or too down on a bad trade. Does fear take you out of your trades too early or greed keep you in too long. These are things that can only be addressed with real money.
Let me emphasize. You’re not ready to play with real money until you have passed the test on the first 2 points.