http://www.break.com/usercontent/2008/1/Stock-Futures-Trader-losses-it-all-and-flips-out-438981.html This is what happen when a trader didn't use stop. He was only down $7K before it turned into a $25K disaster. I know if I don't use stop, I will end up in his situation one day.
Checked em. No 500 pip moves in a short time frame. Found a 400 pip move over about a 12 hour period, but thats not really what i would call a short time frame. Short time frame to me is 1 or 2 hours though. Maybe a short time frame to you is 1 or 2 days, i dontknow. ....bah you distracted me. While i was typing this gold ran up 3 bucks and i was waiting for that trade.
watch out...the Forex traders are gonna eat you alive with this comment...Rule #1..always trade with a stop loss...please expound on your current trading methodoligy
do not use a stop.. if you must use a stop then you are over leveraged.. this is the best way to trade and stay in teh game.. if you can sleep at night without a stop then you are in good shape.
Hey man, the pound is a stick of dynamite with all the uncertainty right now. It is in worse shape than the dollar. I got farked on it a month ago and left it. Better vehicles out there.
obviously this cat needed a stop loss..or not to go to sleep on his trade...very sorry this happened..
There's no luck involved in looking at a longer time frame when a short time frame play goes against you. So you get a 9,000,000 pip surprise move against you in a matter of two seconds, even IF you wait for a 3,000,000 pip retrace that never happens... what's the worst that's going to happen? You're gonna end up losing the 9,000,000 pips, or maybe 9,000,010, basically what you would have lost with a set stop-loss. Big deal. Don't close the position at the bottom. Do damage control and work your way out.
Actually its the other way around. Forex traders eat alive people with stops. Forex brokers, even more so. They love nothing more than to spike a price just to hit your stop. Dont tell me you've never seen this happen.
Yes, exactly. The market sweeps obvious stop levels all the time. The people using the stops are the ones that are the sitting ducks.