Here is a few pointers on choosing a wise stop loss to avoid big losses:
Just a little secret here, please be advised that brokers are continuously manipulating prices on the market and will therefore go for your stop loss so they don't end up in a loss themselves. As it is, only the US Dow is not manipulated as it's run by one organisation. Please be aware of this as you place your trades and stop losses. The market in which brokers operate works in such a way that, once you open position, they will open an opposite position to yours and whichever outcome you get, will be their loss or gain. T his is how they accumulate enough funds to fund pay outs in case of traders winning on trades. They also make commission on the number of trades you place and what spread they are or even both and this can only happen if they stop you out and somehow get you trading again and again. That's why many brokers assign account managers to help you on your learning journey. Essentially, to beat the brokers at their game, one can decide not to enter a stop loss but have it either written down in notes or in your mind and set an alarm in your trading system to remind you of when the price is at you chosen stop loss and go in close your position. Tricky and time consuming as it is, this is the best way to get the most out of your trades. Hope this helps.
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AuthorMy name is Catherine and I am new to forex trading. Archives
August 2017
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