Power of 20 Pips a Day - Truth About Stop Hunting | Forex
Information | Currency | Markets | Fx | Video | Assets | Lesson | Trading
http://www.forexmalibu.com/20pips.php - Tiger Time Lanes Moderator and Global Trainer Sam Shakespeare discusses the truths and myths surrounding the shady broker practice of stop hunting. 14 Day Trial available to 24 hr live online forex trading room and trading software. http://www.youtube.com/watch?v=iFXKPta8h-w
Comments
-
This thing about regarding a stop loss as an insurance policy is totally correct. I would have been a profitable trader some while ago already if it wasn't for the one big thing that keeps setting me back, over and over again: letting my losers run away with me! I'm sure my case isn't an isolated one and if you're struggling in forex too, please read this: http://www.dailyfx.com/forex/education/trading_tips/daily_trading_lesson/2011/12/08/What_is_the_Number_One_Mistake_Forex_Traders_Make.html (if you can't see or use this link, just google for 'What is the Number One Mistake Forex Traders Make'). Set your stop loss and take profit (at least 1:1 ratio) and just make sure you enter only according to your trading plan (only take trades of which you don't have to feel guilty afterwards!). My plan: trading from one hour before the London Session 'til a few hours after; get in with a stop loss of 12-15 pips and exit when I get an opposite trading signal. Make about 4-6 trades a day and quit when I lose about 40-50 pips. This way you avoid big losers (like over a 100 pips, which is ridiculous when trading the 15 minute time frame!), but at the same time, because of trading from one signal to the next, opposite one, setting yourself up for bigger winners. Kinda look at it as using small 'probing' trades (your small losses) to get into the bigger runs. That's also why you should only trade during times when the market isn't choppy, hence the London Session... Hope this helps someone out there. Cheers!