16/08/ · Like every other industry, forex industry also has a mix of top and worse brokers. For people who don't know how to stay away from the lousy brokers, you can check out this article. We have compiled a list of 10 most complained forex brokers that have received the highest number of complaints this week Keep in mind that you trade Forex to make money, not to get a Forex PhD and become a Forex professor in the university. Most people learn Forex chart analysis in a way as if they are supposed to get a Forex PhD and become a Forex professor. They do it in a way that they forget the main and initial purpose of learning Forex 13/09/ · Trading is not a make plan, so stay away from anyone who tries to sell your one. You want your trade practice, law, and procedure. You must spend your time, resources, and money before gaining more experience and taking advantage of the mining style. All in life is accomplished one piece at a time
How To Stay Away From The 4 Dangers Of Forex Trading
Before reading this article please read another article I already published about placing the stop loss and target orders, and the way they have to be set properly. I just want to make sure that you know what stop loss is in details.
Then we can talk about stop loss hunting easier: Where Is the Best Place for Stop Loss and Limit Orders? As you know forex brokers make money when you take a position. They charge you some pips when you buy a currency pair. This number of pips that brokers charge when you buy currency pairs is called spread.
Brokers offer different spreads for different currency pairs. Spread is not the only way that forex brokers make money. It is one of the ways that Market Maker Forex brokers make money. They also make money through swap. They can make money through the other ways, but they are not allowed to. However, whatever you pay as the spread goes to the market maker broker pocket.
Additionally, the money you lose is the market maker broker profit because when you trade Forex through a market maker broker, in fact you are trading with the broker, not the real currency market.
So it makes sense if the market maker brokers like you to lose because your loss is their profit. However, some market maker brokers get greedier and want to make more money faster, how to stay away from correction forex. Stop loss hunting is one of the ways they use to do that. They have some special robots or hire and train some employees who monitor the clients trades.
When a client takes a short position and sets a stop loss and the market goes against the position and becomes so close to the stop loss, the robot or the stop loss hunter employee increases the spread manually to help the price hit the stop loss sooner.
You have a short position and to close this position you have to buy. Your stop loss is always a buy order when you go short. You pay the spread only when you buy. You pay it when you want to close your short position you buy. Back to the example. You have a short position at 1. The market goes against you and goes up to 1.
As your stop loss is a buy order, then the number of the pips of the spread spread pipage has to be added to the market price. If the result equals your stop loss value which is 1. It means if the market price plus the spread equals your stop loss level, then the stop loss will be triggered. What does it mean? Therefore, your buy price becomes 1. However, this is the opportunity that the scam market maker brokers wait for it.
As soon as the market becomes so close to your how to stay away from correction forex loss, the broker increases the spread how to stay away from correction forex. So while the spread is 2 pips and the market is only 3 pips away from your stop, the broker adds at least 3 more pips to the spread to hit your stop loss, and then lowers the spread.
This usually happens in less than a second. The broker increased the spread to pretend that your stop loss was triggered. Not all the market maker brokers hunt the traders stop loss orders. There are good market maker brokers too. Therefore, before accusing the broker of hunting your stop loss, make sure that they have really did it. Unfortunately, it is not that easy to prove that the broker has intentionally increased the spread to hunt your stop loss.
They are right. However, it is somehow impossible to prove that it was the broker who increased the spread to hunt the stop loss, unless they do it by increasing the stop loss for tens of pips when there are no news release that causes the spread to go up suddenly. Once a friend sent me one of his positions details.
There was no doubt that it was a stop loss hunting attempt by the broker. When the broker does it stupidly, you can how to stay away from correction forex prove that it was a stop loss hunting. But it is hard to prove it when the spread is increased for a few to few pips. Manipulating the spread is the best and easiest way of stop loss hunting because it is hard to track, unless the broker does it very stupidly by increasing the spread dramatically, when there is no reason to have such an increase in the spread at that special moment.
It is only the price which is being recorded, unless you use some special robots to record the spread on your own. Some brokers are stupid enough to hunt your stop by changing the price. However, the broker can edit the price later and make it back to normal.
But if they do it, you can easily say that there was no point to hit your stop loss because the price was far away. But why do they do it? If they let your target be triggered, your position will be closed and you will make some profit. But if they keep your positions open, it is possible that the price turns how to stay away from correction forex and then they get the chance to hunt your stop loss and win some money, how to stay away from correction forex.
They can do that if they want, how to stay away from correction forex. They can increase the spread to any level they want. Of course, when the market goes to your direction strongly they try not to do anything because it will look too suspicious and they get caught. However, scam brokers increase the spread automatically through some special software or robots. It is not that hard to program how to stay away from correction forex software to do all these things.
Start with a small account to test the water first. They can do whatever they want. The only thing that can prevents them from cheating their clients is that they really want to offer a good and honest service to everybody.
The other way to stay away from the stop loss hunting and all these kinds of problems is trading through a bank account. Learn more: Forex Trading Through A Bank Account. Trading the longer time frames is another way of staying away from stop loss hunting.
In general, you will finally have to close your account and leave when you trade with a scam broker that hunts your stop losses and cheats, because nothing that fully stop them from cheating you. Is this not the case? We cannot judge a broker as a broker who is fraudulent and not.
Impulsive vs Corrective Waves - Forex Wave Analysis
, time: 11:49BlankRefer - create an anonymous link
The Technical Trend in Forex Trading. The most popular trend is the Technical trend. This trend we can identify using the price chart and trend finding indicators. Many traders like to use the Meta Trader 4 Platform. The moving average is the most popular Technical Trendspotting indicator 13/10/ · But the Forex market has a way of pushing back. The harder you try, the more the market resists. And at more than $5 trillion per day in volume, the market always wins. If losses continue to mount even after reducing your risk and perhaps even your trading frequency, just walk away. Spend time with your family or play your favorite sport Keep in mind that you trade Forex to make money, not to get a Forex PhD and become a Forex professor in the university. Most people learn Forex chart analysis in a way as if they are supposed to get a Forex PhD and become a Forex professor. They do it in a way that they forget the main and initial purpose of learning Forex
No comments:
Post a Comment