Forex brokers hunt for my stops!!!
Relax, you are not schizophrenic, right? No one needs your stops and your little money to hire a person or create a soft to make specifically Your stops hit. Relax.
“But, - you would scream, - just look at my charts. The market came and took out my stop and sharply turned in my favor leaving me behind with a loss!”… And then you would probably add: “And that’s not for the first time, I swear, just look at my charts, screenshots etc.”
Relax. Have you ever thought for a moment why this would happen to you over and over again?
They [brokers] spy on you! They know where your stop is and hunt for it!!! Ha-ha, did you believe that?
The truth is you place your stops where they shouldn’t be placed. You choose the areas of support-resistance Firing Line, don’t you know that the price may FIRE at those levels.
The whole world of traders place their entry and exit orders in the closes proximity of those fire lines making them and accumulating fire balls ready to blast is either direction.
One more time for you in simple words. When price gets to the “Danger. Stay out - fire zone”, many orders are waiting there to be triggered. Half of them, like yours, to close/exit, the other half - to enter. Should the price only sli-i-i-ightly wink to those ready to get in, they enter, the momentum is supported by others and you see a spike against you. Oh yes, your position at that time gets closed and so happen to many other like you, this impulse is an additional fuel to those who was waiting to enter.
In a few minutes, seconds, everything is over; an accumulated fire ball has burst releasing its power. A price move pauses and now everyone got time to think… Aha, the spike move was false, let’s assume our previous trading direction…
What a miserable misfortune… Right?Making a copy for personal use or linking back? Be my guest! Stealing content? STOP immediately! If I find you, your site will be banned!
If you still believe broker hunt for your stops, let me tell you that I also from time to time come out from my Dark Kingdom and steer the price to hit your stop!
**Forex Lord of Darkness**
P.S. the world is not perfect. From time to time we encounter unfair brokers on our Forex horizon. But those brokers get penalized very soon. If you want to have just a bit of additional confidence in your broker, check if they are registered NFA members.
Good post!
There could be unfair brokers, although I don’t know any to name. If you want to avoid being “hunted” do not trade during unpredictable market hours - news time.
All brokers know that during news releases price spins out of control. They may use that time to artificially increase volatility a bit for their users and shake off some additional orders…
Dear Mike, you’ve just missed the whole point of this post :-)
Here is the long story short: Nobody hits your stops! there is no conspiracy! It is you who miscalculated the stop place.
you might need to read it again….
Mike’s got a good point though; for anyone dumb enough to start out in Forex with no experience trading anything whatsoever. Hah!
You have to calculate your own risk. Stops should be place about 10 - 15 pips outside the firing zone. That’s my strategy. Slippage and widening of spreads is a money technique for brokers. Never risk more thank 1% of your account. If the stop is too far away, don’t enter the trade.
Sorry if it sounds like I’m giving advice!
If everybody shifts their stops slightly below trigger (for uptrend) or slightly above trigger (for downtrend) then wouldn’t consensus shift the firing line to those points?? It seems a self-fulfilling prophecy.