I have been using forex.com as a broker for 3 months now… today something really f***ed up occured, I was trading the NFP and placed a stop in eur/usd. when the news came out, I got filled in 60 pips below my stop… not 5 or 10, but 60 pips!!! Is this normal?? I have a mini account.
I think I have to change my broker… what do you guys recommend??
Please reply as I am very dissapointed by forex.com… 60 pips below is to much for my standards… support said they are not reliable and that’s that.
On news spikes that is not uncommon, best not even to set stops, just wait for things to calm down then try to exit on a retracement (which there nearly always is) if it has gone against you.
That’s why many people prefer to close trades, even at a loss, before news announcements. It is too much like rolling dice…
Your question should answer
your own inexperience. Is it normal you ask?
Of course it’s normal. Abnormality is the norm
during the news. Don’t set stop/loss. It bears
repeating over and over. That craziness
is only too short lived as well. Pretty soon
afterwards, it’s business as usual. Either
don’t set stop/loss in your trading or
get ready to shut down before the news
spike. And it is true!!! Accept it!!!
Stop/Loss won’t save you. Trailing stops
won’t save you during the news spike.
I do not make a habit of trading the news, especially NFP. BUT I used to trade news alot, and I NEVER EVER had anything like that happen. However, I don’t deny that it is possible. You do realize that there is a possibility that price can gap over your stops right? If price never actually hits your stop you could be in a mess with some brokers. This is why I prefer not to have positions open over the weekend.
Some brokers represent a gap as a big candle, and some represent it in its true form showing nothing there. IMO, this is the way its supposed to be done. When there is a gap, I WANT TO KNOW.
i am aware that i am inexperienced and i am aware that gaps in price may occur, it’s normal and no one can do anything about it… the thing that bugged me is that the gap was a little over 60 pips. I never thought that a broker with a good reputation (so far forex.com has been very resonable) can mess me up so bad. I have learned my lesson and never again will i use stop losses or trailing stops while trading news.
Anyway thanks guys… for now I am searching once again for brokers (yup, i’m still pissed at forex.com). What do u think about FX Solutions?
They will increase the spreads and employ various other methods as you’ve found out, to try stop you doing it.
Its not the easiest way to trade, id find an alternative method, rather then an alternative broker as i think your going to find something wrong with each one in turn with news trading.
