Why does my trade cause a reaction

can someone explain to me why the market changes direction immediately precisely after
I place a trade?

there no explanation for this.

also when I close the trade it will go against me?

please can someone help explain why this happens.

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The most likely reason is because you are entering the market whilst price is currently going the way you expecting. This is a kind of ā€œchasing the marketā€ situation. But prices ebb and flow continually and if you buy on a rise, for example, then the price is soon going to drop back bit. I suspect you are looking at this on a macro basis from a very short time frame?

No one can, or expects to, buy or sell at precisely the top or bottom and it is a factor in any trade decision to decide how far one is prepared to allow the price to penetrate into negative territory before accepting it is wrong and closing it to protect capital. This may be a physical stop order or just a mental identification.

These fluctuations are much more magnified when trading short term positions, but if you are trading on a longer term basis then a pull-back of, say, 10-20 pips is of little significance compared with a target of maybe 200 pips or more.

Another factor is that your new position will always show a minus when it is executed to reflect the spread between bid/offer.

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Have you gone through the Babypips school here? If you havenā€™t I recommend that you do, it could help you avoid this.

None of us here is big enough to move a market in any given forex pair. It just happens that you are it seems repeatedly entering trades at points where moves or even trends are reversing. This is a common problem for retail traders and most prevalent on intra-day time-frames.

The most basic chart pattern is a trend. If youā€™re trying to join an uptrend, and you find price falls as soon as you enter, youā€™re entering at a high and should seek a pattern / signal which enters you lower in the trend channel, for example after a price fall but with entry indicated as price starts to resume its upward movement.

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Yes, I would also find that, if not immedietely, then very soon after entry my trades would go against me - yet my analysis was good (I believed)ā€¦ this went on for some time until I realised that it was my ā€œactualā€ entryā€¦ not my planned oneā€¦
I seemed to be geting in too lateā€¦ missing my planned entry price, and then chasingā€¦
Now when I work out an entry, I allow myself a specific amount of pips or cents away from this price as an absolute maximum. no more chasing - I trade less but my win rate improved

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thanks. I get that it fluctuates and goes into negative due to the spread. but why it reverses as soon as my trade is placed. the same if I then close the trade out. I buy it goes down then when I see it go down I close trade then it goes back up. it does this repeatedly when I open and close the trade. any idea any one know ?

What time frame are you using ?
how many pips do you let it go against you untill you close ?
What broker do you use ?
And lastly what setup do you use to enter the trade ?

To the OP: have you tried holding a trade for, say, a week? Are you trading in an accumulation phase or is there a clear trend?

My advice would be to take a step back and reevaluate yourself. If youā€™re having trouble dealing with the swings against you psychologically, perhaps youā€™re trading with too much risk for your appetite. If youā€™ve tested your strategy well you should be confident that this is just an unlucky streak that will eventually end. The numbers donā€™t lie.

this happens on the 30 sec time frame. just want to know why it bounces just as I immediately place the trade.

yes I 've held a trade for a week before. but when I make the initial market entry price trade it would reverse as soon as trade is made. I can see it on the small time frame 5 sec or 30 sec.

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Unfortunately there is little that you can do to change thatā€¦ Even if you collected video evidence from your trades,showing where price was before you entered your order and immediately after, and it showed consistent price fixing by your broker (which is unlikely at an individual level,perhaps), you would have a hard job proving that your broker had anything to do with these price movesā€¦

On your trades that you held for a week etc. did imperfect timing affect the overall result/profitability of your trades?

I think trading very small timeframes leads to frustration in many people as the continuous, frequent changes in price direction often are (coincidentally) in the opposite direction to that chosen in the trade that was just put through: this can lead to losses and a sense that the broker is out to get them on every trade, trying to steal their money. Brokers can pick off stops, sure enough,but if you did not trade with stops (for example) then if you traded within a trend you may not be impacted by small counter-trade movements if you could stomach waiting a few more minutes, hours, etc. depending on your leverage for that trade.

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On that small a timeframe it is impossible to find logical reasoning on any movement. If you are not being stopped out by these moves then i see no reason to suspect anything fraudulent here.
It is nothing more than the Rock and Roll in the market when viewed through that kind of microscopic window.
But if you do suspect malpractice then you could open another demo account with a different broker, or even just a price feed app, and monitor price movements simultaneously on both your trading account and the demo.

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Iā€™m going to suggest that price action on a time-frame of seconds is like Brownian motion, as I recall from my old school days.

You mean like these?

220px-Brownian_motion_large

Or as in charting a stock price?

Brownian motion

Perhaps we should backtest it and sell it on YouTubeā€¦:slight_smile:

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I am I the only one that sees this happening . Do all of you see it on your own trading accounts?

place a market order trade. then market reverses pretty much immediately. look on the small time frames like 5 or 30 sec of your real money account.

Do you see it on your own trades. I just want to be sure its not me and there a reason for it happening. Like the market trying to fill its order through buying or selling against me.

I donā€™t see it but thatā€™s for two reasons - I never trade intra-day, only long-term, and I never enter trades live, only through pre-set orders.

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I very much doubt that you are trading big enough size to cause the interbank market any concerns over filling the order. There are brokers that do not like large-scale scalping on these micro timeframes but I doubt that is the issue here.

I nearly always see some kind of pull-back on my new positions and I consider that entirely normal. I do not try to hit the top/bottom any more on entry than I would on exit. I pick a level that interests me for entry and it is not significant whether the market continues a bit beyond that - so long as it remains within my stopout boundaries.

I still suspect that you are entering long on a price rise and short on a price fall and only seeing a normal reversal shortly after entering -especially on such mini timeframes as seconds.

But, like I said, if you want to be sure it is not your broker then get a second price feed source and watch them simultaneously for any deviation (they probably wont mirror each other precisely).

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ā€œI still suspect that you are entering long on a price rise and short on a price fall and only seeing a normal reversal shortly after entering -especially on such mini timeframes as seconds.ā€

ok Thanks. so your saying its ā€˜normalā€™ ? why is it normal though. why did it do the reversal of my trade at that instance., that what i am not understanding :frowning:

Why does it behave like that. If price was rising and I put a market buy trade on why doesnā€™t price continue rising? But instead reverse. Why is that normal.

That is hard to say without seeing any examples. Maybe after your next trades you could take a screen print showing the price movement leading up to your entry (or exit) and what happens after.

What kind of price movements are we talking about here in pips? how far are you seeing it pull back?

Price continually seesaws and if you are jumping on board a current upswing or downswing in terms of maybe 10-20 pip legs on these time frames then it is not unexpected that you are already entering near the end of a current leg in the overall move.

But easier to tell from a picture! :slight_smile:

But I would add that if you are not yet very experienced with trading then you are trading a very difficult approach! (IMHO!)

What is the basis of your trade decisions? Is it a technical strategy based on set rules or intuitive?

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