Hi guys. I opened a real account today. Deposited a $100.
Applied everything I am learning and opened a 0.01 gbpusd order. It was a sell order. Guess what price went up to my sl and closed off the order. Then price started to drop nicely after that… and if I was in the order… then it would hit my tp. That was the brokers and stopped me out Im sure!!! Demo is so nice because its manipulated. Broker wants you to trade to your hearts content on demo and then when you open real account, he takes your $ 
The truth is, the market is out to get you.
Brokers don’t control price, the big banks that make the market do.
They manipulate the price to induce traders in to taking a position. Then reverse it to hunt price areas where these traders are most likely to place their stop losses. All the while they are taking the opposite position.
A harsh reality but it’s true. This is how they make money and how most retail traders lose.
You need to change your paradigm from retail trader to market maker and trade like them.
Trading is 50% psychological and 40% money and risk management. Which are not limited to being disciplined and risking 1% per trade. The former extends to getting in to the minds of the other participants (The herd) and being several steps ahead of them.
To make money trading, you have to find willing buyers and sellers to take the opposite side of your trade.
When you look at a chart do you see where the money is and what most people are going to do depending on what the price does? Or are you looking at indicators that distract you?
Blaming the broker won’t help or change the way the game is played.
Sorry for to hear your story, not sure where you placed your S/L but if it’s too tight as you fear losing too much then there is always a greater chance of being stopped out.
Again your in a fairly volatile pair, so they can move quickly either way especially this week and the news events going on, pay attention to the weekly calendar there is one on this site, I personally use Forex Factory.
Thanks for the replies guys. I really got some new insights on trading now
@ProfitPotential, @rolenn01
Neither the broker or big banks are out to get you!
Most modern good brokers just pass the raw market price from their suppliers onto us. Depending on the type of account you have they may add extra spread or charge commission.
Banks do try and protect their own trades by scalping away from their stop loss orders. But they can’t see where us little players have our orders.
Also a word of warning to everyone out there at the moment. It is reasonably clear that the market doesn’t have any clear direction. Hence how can we know if we want to buy or sell? If you can’t understand what direction to trade, don’t trade!
Anything is possible here. It could that an economic event caused the move. If you stick around long enough, you’ll notice this is common market movement. When you have this knowledge, you’ll change how you trade or how to make use of SL and TP.
They are not there to help you make money, that is for sure. They want money to flow from the bottom of the food chain upwards to themselves. Guess who is at the bottom of this food chain? yes, the retail trader.
Where does the price come from do you think?
@ProfitPotential
You say trading is 50% psychological.
Now you try and tell me falsely that both brokers and banks are teaming up against me so that money (which I don’t trade much because I don’t have much) flows from me to them.
To fill even just a stop loss order for a bank it would take many retail traders combined with my order to fill their order. Sometimes this may happen. But I know banks are not interested in where the retail traders orders are located. They are interested in areas of high liquidity, low risk and looking for direction.
If you are trying to trade, you don’t even have your 50% psychology correct!
In answer to your question, where does price come from? It comes from the inter bank market! Not the retail trader to bank market!
There are too many contradictions in what you are saying. It would take a long time to untangle them…
Lets start here;
-
For you to buy, someone, somewhere has to sell to you. To sell, you need willing buyers.
-
For you to make money trading, someone, somewhere has to lose some money.
-
The “big banks” make the market / The “big banks” are market makers.
Can you accept these simple statements?
I am open to be proven wrong and have my psychology fixed if you have the higher knowledge.
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It’s hard to determine whether your claim is plausible unless we have more information about your trade.
For example:
- What was your entry, SL and PT?
- What time frame were you trading on?
- When did you enter? How were liquidity conditions then?
- Did you place your stop at an obvious area of resistance where it’d make sense for institutional flow to move the price up there first to get a better entry price for themselves?
- Did you factor in volatility?
- And so on…
Point 1 - correct! To buy someone has to sell and to sell someone has to buy.
Point 2 - Sometimes correct, sometimes incorrect! For example I could buy from someone’s sell position profit and sell to someone who may ride the trend further and also profit. In my example no one lost!
Point 3 - correct! I mentioned that in my previous message. The spot forex market price comes from the interbank market! (Or to be technically correct) price comes from agreement between buyer and seller.
If you truly believe you are going to loose to the banks then that’s a crazy belief system to have for a trader.
I suggest you change your belief system.
I never said that, this is what I said.
if the “big Banks” are market makers, they make money from the other participants losses.
Since the “big banks” make the market;
Because it is in their interest to, otherwise how is a market maker going to make money.
So if the price comes from them, why wouldn’t they;
If you dont think that is true then please explain to me why the price moves against majority of retail sentiment?
What do you suggest I change my belief system to? please elaborate further.
It doesn’t matter one iota if you think you are trading with a broker that has an ECN model when their “liquidity providers” are market makers serving up the price that you are trading on… If you are a loser, it is more profitable for them to keep your trades in-house. if you are a consistent winner, then they will hedge your position with a “liquidity provider”.
@ProfitPotential
The market is complex.
Your average retail trader is being sold lies about using methods like technical indicators, price action and candlesticks patterns to determine direction, entry and exit.
The truth is all financial markets worldwide are interconnected and related to each other.
They all react to news and economic indicators.
Reason why… because this is what professional traders focus on.
Hence if they focus on news and economic indicators we should too.
The biggest influence on the forex market is the Central Banks not the big banks.
The Central Banks are the ones who control each economies interest rates. And furthermore if a Central Banks desires they have the power to intervene and control a currencies price. But they don’t use this power very often.
Here is my proof on Central Bank intervention. U.S. Foreign Exchange Intervention - Fedpoints - FEDERAL RESERVE BANK of NEW YORK
Proof the forex market reacts to news we can all undeniably see on our current daily charts what happened 19th March 2020.
Examples of proof that all markets are interrelated are the strong negative correlation between oil and USDCAD, positive correlation between Nikkei 225 and USDJPY and the current correlation as seen on daily charts of AUDUSD and Dow Jones.
So, in conclusion, do you really still think banks are manipulating price to take benefit from the retail trader? Or is it just that the majority of retail traders have been sold too many lies about how to invest and they don’t understand the complexity of the markets.
A Retail traders trade is probably not even making it to the inter-bank market. They remain in house on the brokers books. The trade is offset against in house liquidity. When the book is lop sided, the broker will hedge the excess with a liquidity provider or accept some risk to improve their bottom line.
A consistently profitable trader will probably have their trades sent straight through to a “liquidity provider” to mitigate risk. The broker will earn a volume fee from the liquidity provider and possibly roll over fees.
The retail broker is a puppet, the strings are being pulled higher up. The strings being the price and we have established where that comes from.
So it is in my opinion, retail traders are trading in a parallel market environment that mirrors the inter bank market. where they become collateral damage to those that control the price or pull the strings.
The central banks are at the top of the food chain. The retail trader is at the bottom, as a collective. This deosnt mean that an individual cant ascend this and trade profitably…
I still think that the “big banks” are manipulating the price. You can say, controlling it. They make the market and move the price to areas of liquidity to match buy and sell orders. or where participants are motivated to buy or sell. They are market makers and their interest is for the majority of participants to lose money.
It is only a technicality that retail traders are interfacing with their puppets. They are still playing against the puppeteer.
Happy trading.
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You need to understand the fundamental and technical analysis to place your trades in a right direction. Stop loss is very helpful as it limits your losses.
I really don’t have this issue of banks gunning for my stop loss.
Its the furthest from my mind.
Forex is a whippy market for sure and down on the lower timeframes all these shennanigans might actually be true.
Usually I just put whipsaw losses down to my own stupidity.
In 17 years of trading I only ever once had to question a price and got a refund - albeit after two weeks.
If you think the banks are after you step up a timeframe or two and see how that’s goes.