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Got stopped out for no reason!!

Discussion in 'Beginners Bootcamp' started by Johnny2pips, Jun 25, 2011.

  1. Johnny2pips

    Johnny2pips Sergeant

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    Is there something I'm missing here?

    Went short on GBP/CHF on Friday. This is a shorting pair for dummies as it has been for months. You don't need no brains to score on shorts here and all.

    Sold at 1.3397 and stoploss at 1.3418
    Was watching it go up and when it got to 1.3410, I got ready to raise my SL but alas. It was not to be. My trade disappeared in front of my very own eyes.

    Got stopped out at 2011/06/24 15.43 at 1.3418

    It only went up as high as 1.3411 on the 15.30 candle and 1.3406 on the 15.45 candle. This is LONDON time.
    Can you please check on your MT4 platform to see if I am correct before I make a fool of myself by complaining.
    Lost $250 and could have made $515 on this trade.
    Is this a spread problem?
     
  2. jpadventure

    jpadventure Private

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    Stop moving your stop backwards! : )

    As you probably know, when you short - you haven't paid the spread yet, you pay it on exit.
    When price gets close to your stop, it'll trigger early to pay the spread, and 8 pips on a cross pair seems feasible.
     
  3. Pharaoh

    Pharaoh Colonel

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    I think jpadventure is right. They probably got you with the spread.

    Rightclick on your chart.
    Select Properties.
    Select Common.
    Put a checkmark in "Show Ask Line".
    Click OK.

    On the higher timeframes you won't see it. Drop down to a 1 or 5 minute chart and you'll easily be able to watch the spread.


    Also, don't ever extend your SL unless you have an amazingly good reason to do so. You picked your SL for a reason, and price heading towards it isn't a good enough reason to change it.

    I would say to never ever extend a stop loss, but then someone will come up with some fantastically improbable scenario where it would be justified.
     
  4. RahmanSL

    RahmanSL Major

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    "....You picked your SL for a reason,...."

    Ohhhh!...so there should be a reason for putting a SL on a trade!!!
    ...hmmmm..and here I am thinking that I should put a SL simply because other traders are doing it and my SL (if at all) are placed at a level where it's next to impossible to be triggered.
    Problem is, my account(s) will turn a bright reddish pink and then...pooof...the account is left with a few cents balance : (
     
  5. Johnny2pips

    Johnny2pips Sergeant

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    Thanks guys for the info. Just a thought on my SL positioning.
    With the CHF making new record highs weekly for months against all majors, I wait for 2 to 3 green candles on the 15 m chart then go short.
    I this case, a SL will just be a burden as it is going up. It WILL reverse at some stage. I will then place a SL when I'm in profit.
    Only if I am still watching it, will I raise it if it turns. It MUST come down again.
     
  6. Pharaoh

    Pharaoh Colonel

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    Unless you trade tiny amounts, not having a SL set still leaves you with one final SL - a margin call.
     
  7. Johnny2pips

    Johnny2pips Sergeant

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    No my good man. I am talking about CHF here. You can teach a monkey to make profit on this currency.
    That's the only reason I trade it. On 10K I use 0,5 lots per trade and place 3 to 4 within minutes as it goes up. Only on the up. No SL as it is going up and I am placing shorts.
    Learned my lesson with these stop grabbers on CHF crosses.
    We all know that if CHF weakens, it MUST strengthen big time soon. Within a day or two.
    Made $750 in half a day today No SL. Sold at 1.3354 to 1.3364 and closed at PT 1.3300.
     
  8. Pharaoh

    Pharaoh Colonel

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    Check your charts. The SNB has been known to do "interventions". It's rare, but when it happens, all CHF pairs go wild.

    If you are really confident in the pair, then set a wide stop - well out of reach of a stop grab trick by a broker, but close enough to prevent a margin call if there's a massive spike against you.
     

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