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[Administrator]

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[trader]

Are they kidding? No stop loss? And targetting 100 pips a trade?

[journeyman]

I'm very disappointed by Kumar's comparisions of forex with stocks and housing. First of all, stocks do go up in prices in the long run (as a whole), compare dow jones index now and 20 years ago. Second, we usually don't use margin when investing in stocks, even your stocks go down to zero, you can still hold them for as long as you like, nobody will force you to take loss.
Same with the houses, even there are down times in housing market, you can compare prices now with 20 or 30 years ago, they do go up in price like everything else in our life. That's why if you're not a flipper with 100%+ mortgage loan, you don't have to cut loss, because they will go up in price sooner or later. Forex however, is a 2 way street, it's basically an exchange rate of one currency against another, and when you trade forex with 1:100 margin, 500 pips loss per lot could wipe out a $5000 account. If you invest in the stock indices or houses with no margin, yes, you're investing. If you trade forex with 1% margin, no, you're not investing, you're speculating with very high risks. So please don't compare forex with stocks and housing markets again.

[Clemen]

I agree with you fully, journeyman.

If we are concerned with the brokers seeing our stops-loss and hunt for them, we can always have a mental SL. Then again, Kumar would say the mental SL still "attracts" the loss.

What hogwash "The Secret" is! One of the men featured in that tape is under investigation for cheating investors in Australia.

[journeyman]

Originally Posted by Clemen

I agree with you fully, journeyman.

If we are concerned with the brokers seeing our stops-loss and hunt for them, we can always have a mental SL. Then again, Kumar would say the mental SL still "attracts" the loss.

What hogwash "The Secret" is! One of the men featured in that tape is under investigation for cheating investors in Australia.

Thank you for you info, Clemen. When I first learned that he does not use stop loss, that's a big warning sign to me already. Then he said he has good feelings about the market, that's a second warning. Then he compared forex with stocks and real estate investments, that's a real big warning to me.

I've seen alot of people lose their accounts trading that way. It's like gambling with "double your bets" . Everytime you lose, you keep doubling your bets until you get a winner. Sooner or later, you 'll have losing streak long enough to wipe out all your bank account. That's same as no stop loss trading. You just let your position go against you, until one day, that losing position is big enough to wipe you out.

[Clemen]

Doubling up your bets is named the Martingale system, which was one of the earliest "brilliant" systems that has proven never to fail to break the biggest betting banks. Tried on horses, casinos and now on trading...sooner or later the betting bank will break, as the risk/reward ratios become far to great.

Not having a stop-loss can never work. If he is aiming for 100 pips and the pair has gone to -200 surely that could be an exit point, since obviously then the 'tip', from The Banker or ART, is already shown to be wrong in that instance.

I lost money following his signals when I encountered margin calls twice. Did you trade the signals and lost too, journeyman?

[Pharaoh]

Mental stops have a way of getting "adjusted" while waiting for the market turnaround. Some people can stick to them, but most can't.

If you are worried about stop hunting, at least put some kind of emergency stop in 100 or so pips below your mental stop. At least that covers you in the event of a huge market swing, and is far enough out that a broker is unlikely to hunt it.

If you use EAs, some of them have invisible stops. This is good, assuming your connection to the broker never goes down. I think I'd like an EA that has invisible stops plus a much larger (less huntable) emergency stop.

[journeyman]

Originally Posted by Clemen

Doubling up your bets is named the Martingale system, which was one of the earliest "brilliant" systems that has proven never to fail to break the biggest betting banks. Tried on horses, casinos and now on trading...sooner or later the betting bank will break, as the risk/reward ratios become far to great.

Not having a stop-loss can never work. If he is aiming for 100 pips and the pair has gone to -200 surely that could be an exit point, since obviously then the 'tip', from The Banker or ART, is already shown to be wrong in that instance.

I lost money following his signals when I encountered margin calls twice. Did you trade the signals and lost too, journeyman?

No, I never joined. I've seen and known at least a dozen people who lost every penny they had trading without stop loss, so I know it doesn't work.
Another trader said it very well in the forum, " just because you avoid it, doesn't mean it won't happen. "