Why we are loosing in the first place?
There are many small reasons to be true. But most three are:
- We do not believe in our system.
- We do not use SL ( stop loss ).
- Our expectations are to big.
It's easier say then do - yes, that's true, but!!! If those reasons are stopping you from getting more then many other jobs: free time, more money - then why not to change it??? Why not to belong to 5% niche which is making good money in Forex??? Why not get something indefinitely sustainable??? Mind 95% people loose their money because of those reasons. If you loose you are with them. If you have tried and can't find a cure for your loses, then let me invite you to my course @ http://ficner.info/ and here let me explain one of three biggest reasons. Here is an email from one of the companies where I'm still subscribed.
Before you will start you reading let me show you example for no losses in real micro accounts of my self:
no SL ( stop loss ). How long I could be lucky to make it grow this way? Up to 3 months on avg., then I have one real loss which is wiping over 30% on my equity minimum. Then where is the point???
Use SL - be wise and become FX Trader PRO.
Now look here, this is a second real micro account, but this time with SL. I can sleep well and still make profit, then even if after 2 - 3 month I would have bigger loss, that will cost me small % on equity:
Should you always place
a stop-loss order?
a stop-loss order?
Dear Reader,
If you've been trading for a while, you probably know all about stop-loss orders – and hopefully, you've been using them...
But in case you're unsure: these are automatic orders to close your trade if the price goes too far in the wrong direction.
That way you know how much money you are risking on any single trade...
You can strictly limit your potential losses...
And you don't need to watch the market at every moment.
But some readers tell me that they never place stop-loss orders. Instead, they just keep a mental note of their 'stop- loss' price level.
Then, if the trade does go against them and the price reaches their mental stop-loss price, they manually close their trade.
Sounds dangerous to me. In fact, it IS dangerous. So why do some people do it?
Well, for the most part it comes down to conspiracy theories.
As you know, there are a lot of people out there who don't believe the official versions of world events – whether its UFOs or JFK's assassination...
And this is a similar mindset – except in this case, it's that people don't trust their spread betting providers to tell them the truth.
Specifically, they're afraid of what is called 'stop-loss harvesting'
Now, this is a very contentious topic, but I'll try to explain it fairly:
Basically, stop-loss harvesting refers to a belief that some spread betting providers are not 100% scrupulous...
And that because the broker knows exactly where your stop- loss is, the idea is that they could manipulate the price on their chart to hit the stop-loss level.
People who buy into this theory simply don't trust their spread-betting providers...
And they reckon that by keeping a mental note of their stop- loss price - rather than placing an automatic stop-loss order - they're protecting themselves.
But like I said before - this is incredibly dangerous.
Firstly, if you only have a mental note of the stop-loss order, you're going to have to watch the market like a hawk.
That's OK if you're happy to stare at your screen all day...
But even then, you could still miss it if you take a quick break.
And these days, when the markets DO move, they sometimes move very fast - often in seconds.
Secondly, in the heat of the moment - and with the emotion of your live trade going against you - you might choose NOT to close the trade when it gets to your mental stop-loss price.
You might say, "just another few minutes, it could turn around..."
And letting your emotions run away like that that could be fatal.
But beyond all that, I simply don't believe that spread betting providers are out to rip us off.
Sure, it's possible. Perhaps it's even happened once or twice...
But the reality is, most spread betting providers actually WANT us to trade.
And because they make their money on the spread, they want as high a volume of trades as possible.
In other words, they want us to do well so that we trade more...
And what's more, they want to protect their reputations.
Remember: for most of us, our trades are pretty small in the grand scheme of things...
And it's very unlikely that someone is going to manipulate the price just so a small trade gets stopped out
So, all things considered, I still recommend placing an automatic stop-loss order on every single trade you make...
And you should always make sure you use an FSA-regulated provider that's well-respected in the industry.
It's simply a much safer way to operate - and it should keep you disciplined and out of trouble.
And I think you'll find it's far more productive to concentrate on becoming a better trader than to worry about the spectre of stop-loss harvesting.
Best wishes,
Richard HillEditorForex Round-Up
P.S. Do you know someone who'd like to receive Forex Round-Up themselves? Could you be the one to introduce them to the world of forex?
All they need to do is visit www.forexroundup.co.uk and sign- up for free. Or you could forward them this email and tell them to click here.
If you've been trading for a while, you probably know all about stop-loss orders – and hopefully, you've been using them...
But in case you're unsure: these are automatic orders to close your trade if the price goes too far in the wrong direction.
That way you know how much money you are risking on any single trade...
You can strictly limit your potential losses...
And you don't need to watch the market at every moment.
But some readers tell me that they never place stop-loss orders. Instead, they just keep a mental note of their 'stop- loss' price level.
Then, if the trade does go against them and the price reaches their mental stop-loss price, they manually close their trade.
Sounds dangerous to me. In fact, it IS dangerous. So why do some people do it?
Well, for the most part it comes down to conspiracy theories.
As you know, there are a lot of people out there who don't believe the official versions of world events – whether its UFOs or JFK's assassination...
And this is a similar mindset – except in this case, it's that people don't trust their spread betting providers to tell them the truth.
Specifically, they're afraid of what is called 'stop-loss harvesting'
Now, this is a very contentious topic, but I'll try to explain it fairly:
Basically, stop-loss harvesting refers to a belief that some spread betting providers are not 100% scrupulous...
And that because the broker knows exactly where your stop- loss is, the idea is that they could manipulate the price on their chart to hit the stop-loss level.
People who buy into this theory simply don't trust their spread-betting providers...
And they reckon that by keeping a mental note of their stop- loss price - rather than placing an automatic stop-loss order - they're protecting themselves.
But like I said before - this is incredibly dangerous.
Firstly, if you only have a mental note of the stop-loss order, you're going to have to watch the market like a hawk.
That's OK if you're happy to stare at your screen all day...
But even then, you could still miss it if you take a quick break.
And these days, when the markets DO move, they sometimes move very fast - often in seconds.
Secondly, in the heat of the moment - and with the emotion of your live trade going against you - you might choose NOT to close the trade when it gets to your mental stop-loss price.
You might say, "just another few minutes, it could turn around..."
And letting your emotions run away like that that could be fatal.
But beyond all that, I simply don't believe that spread betting providers are out to rip us off.
Sure, it's possible. Perhaps it's even happened once or twice...
But the reality is, most spread betting providers actually WANT us to trade.
And because they make their money on the spread, they want as high a volume of trades as possible.
In other words, they want us to do well so that we trade more...
And what's more, they want to protect their reputations.
Remember: for most of us, our trades are pretty small in the grand scheme of things...
And it's very unlikely that someone is going to manipulate the price just so a small trade gets stopped out
So, all things considered, I still recommend placing an automatic stop-loss order on every single trade you make...
And you should always make sure you use an FSA-regulated provider that's well-respected in the industry.
It's simply a much safer way to operate - and it should keep you disciplined and out of trouble.
And I think you'll find it's far more productive to concentrate on becoming a better trader than to worry about the spectre of stop-loss harvesting.
Best wishes,
Richard HillEditorForex Round-Up
P.S. Do you know someone who'd like to receive Forex Round-Up themselves? Could you be the one to introduce them to the world of forex?
All they need to do is visit www.forexroundup.co.uk and sign- up for free. Or you could forward them this email and tell them to click here.
Brak komentarzy:
Prześlij komentarz