im tradin a demo about a year now and its going well, but somtimes the prise takes mi out exactli at the stop loss point, and it made me wonder about the stop loss and the take profit points, that i can make in any tradin program.
isent the stop loss actualy a trade agains me?
for example:
im buying s&p500 at 1180.25 my stop loss is at 1176.25 and my take profit at 1188.25. in other words im sayin: now im buying at 1180.25 and also im willing to sell at 1176.25 or 1188.25
is it logic what im saing here? can someone please healp me understand.
sory for my poor english i hope i made my self clear
Think of it like this. When you are placing a stop you are not placing an order on the open market. Instead you are asking your broker place an order if the price ever drops down that far.
If you are saying that, by placing a stop loss the market will move down to hit your stop, the answer is no. The market cannot react to stop losses that are placed, Your broker can however.
Some brokers have be accused of manipulating pricing to hit stop loss orders. When they do this it is not for the purpose of hitting just your stop loss order. Instead they do so to hit hundreds or thousands of stop loss orders at the same time. This doesn’t mean you should trust your broker. Just make sure you get one with a good reputation.
May I ask, what country are you trading from?
actually it is logically what you are saying, though i have a little other perception of this thing
first of all, thank u for the answer.
right now im trading from israel, i hope moving to argentina, in a few months.
and yes, i ment that its easiest for the broker, to take u out at your sl point. and if so how can i avoid it?
if i anderstud correct the only way to trade onestly, is with an ecn broker, in the usa, were there are regulations, by the nfa and cftc. is it true?
There are many good brokers, really;)
Important to choose the right one. And it is needful to do just from the beginning: like the house building - first you make fundament, then all the rest. Here is the same principle:cool: