If that’s true 99% of the time, but the remaining 1% of the time having no stop-loss kills your account, should you use them?
Are people here spamming you all the time?
Everyone can see all the spam posted here, but are they actually spamming you?
2 Likes
Not really. There’s only a handful of real regulators who can actually help defrauded customers.
Most ‘regulators’ (especially in small, offshore island countries) are fake ones paid for by the ‘brokers.’
You’re only ever going to get help from a regulator if you use a broker regulated by ASIC, FCA, CFTC, NFA or a European Union one. Any other ‘regulator’ and you’ll be whistling in the wind.
With CFDs, most are bad apples.
Remember that (wherever their office actually is) they choose where they’re regulated.
The big question to ask yourself, when you see where your account will be regulated is “Do they want my account to be regulated there because they want their customers to be well protected or because they want to avoid problems for themselves?”
This is what you need to know before sending any money to a spot forex CFD broker.
These days it’s a really big, increasingly important issue.
2 Likes
In trading it’s you vs you, not the market or broker. I will recommend you go study the discipline trader and/or trading in the zone, both by Mark Douglas. Your orientation will be corrected.
You mean manual/automated stop loss hidden from exchanges and brokers.
It’s possible to execute stop loss manually. However, I’d like to automate stop loss or target with a program. That’s still in the realm of discretionary trading.
If I do any automated trading, it would be for hiding entry, stop loss, and target from exchanges and brokers. For now, manual stop loss is good enough.
A few options
- Execute stop loss manually when you see the price going against you.
- Run a program that executes stop loss without leaving a stop loss order on brokers or exchanges for any extended period of time. Exchanges and brokers want liquidity, and liquidity rests on visible stop loss orders.
You need invisible stop loss.
Exchanges and brokers are big whales. Whales are constantly looking for liquidity which usually rests on stop loss orders. Whales who have inside information will hunt stop loss orders with precision.
Whales who don’t have inside information will still hunt stop loss orders because they can guess where stop loss orders are.
To avoid getting stopped out, you could manually execute stop loss if the candlestick closes below the stop loss at a chosen timeframe. You can also automate stop loss execution with a trading bot.
Guys, where is the problem with hide/ unhide the stop loss? Do you really think that each broker hunts each customer stop loss? Is chart looks extremely different? No, these difference exist because FX market is decentralized and who will explain fact that Algo trading is profitable? If brokers hunts stop losses, EA’s will not work permanently.
If you have poor strategy, don’t blame all others, you are responsible for all aspects your trading.
3 Likes
I’ve noticed that quite a lot of people posting in beginners’ forums like to imagine this is so! 
1 Like
I think that it is not stop losses that lead to losses, but an unsuccessful trading strategy, according to the rules and conditions of which you set your SL. Therefore, I think that it is the strategy that you need to pay attention to, try to improve or optimize it.
1 Like
What if there’s 100 accounts
1 Like
Lol, different situation, then. That’s one way of playing it, certainly. Or you could transfer the funds from those 100 accounts into one or two futures accounts, side-step all the CFD “broker” issues and trade instead a different way, in a transparent, honest, genuine market? Not everyone’s choice, I appreciate, but still a legitimate suggestion …
1 Like
I agree with what @steveepperson is saying here.
I believe the location of you SL is key. Get it out of the way of the “noise” where everyone else has placed theirs.
Whether “they” are hunting your stops, or manipulating the markets it doesn’t matter, price is going to jump around, and if your SL is too close or in the same area as thousands of other SL’s then it’s pretty much guaranteed to get pinged, then continue in it’s established direction.
I would personally never advise trading without a SL like some here do. But those who do and survive are much more experienced, or they swing trade the daily charts where there is usually more room for price fluctuations and less chance of price wiping you out if you accidentally sleep in one morning. Some use hedging as part of their strategy. Either way, money management in one form or another, is extremely important in this business if you want to trade long term.
4 Likes
Well, I guess that means you gotta do your research about their regulatory firms. Don’t it?
Tbh, I think you just gotta do your research and beg to God that you are lucky in your choice.
Visible stop loss orders will appear in the heat map which is public information. Everybody can see the heat map.
Whales look at heat map and use stop loss orders to fill their orders.
If your stop loss order is big enough to make difference in the heat map, you should make your stop loss invisible.
Since it is public information anyway, brokers and exchanges will also use stop loss orders to fill their own orders.
A big stop loss order or an obviously hot stop loss zone is just begging to be eaten by whales.
Could you send me an example?
We must take full responsibility for our results and stop blaming others such as brokers for our failure. My own experience is : 1) First create a trading edge ( meaning a trading system that is profitable in the medium to long run). 2. Then back test the system until you are confident that your system is profitable 3. Then execute your sytem rigorously. 4. Journal your trades, emotion etcc. 5. Once a month review your results and make adjustments. ( In creating your edge look for win percentage and rusk:reward ratio’s etc). Hope this helps.
2 Likes
Hi Sias!
Welcome to Trading! First, I am also over 50 and when I realized I should’ve started investing for my retirement 30 years ago, and looked at my options, trading was The Option…lol…I started trading 3 years ago and after losing thousands of dollars and hope, I kept coming back and refining my formula…
Good news: it can be done!
Bad news: Stop Losses are a necessity
There are a few ways you can go about them and I will share with you two of them…
- Use a stop loss based on the daily ATR (Average True Range)
- (My Favorite) place your stop orders above/below the liquidation/liquidity pools…
Google “How to Spot Liquidity Pools”
1 Like
If you are rather earning profit without “stop loss”, then, i can say that is your strategy. Keep it up.
1 Like
This is how whales spot stop loss orders. Whales also place fake orders on the heat map to fool others. There are fake orders on the heat map.