advice for newbie trader please

Discussion in 'Commodity Futures' started by futures, Apr 10, 2011.

  1. futures


    can i first say im glad i found this form, their is so much interesting information and advice here.

    i'm quite new to futures trading and have recently opened a mini trading account in the UK to have a dabble with.

    my trading strategy is quite simple - im allways looking to get 2/1 for my trade, so i set my stop loss at half of my profit target. once i hit my profit target i half-up my stop loss locking in a guaranteed profit, while letting the extra run for free.

    this has worked well for me at first - but i have noticed one issue with stop-losses. a few times recently i have noticed my stop loss hasnt been hit anywhere else other than in the client im using, in other words my stop loss was set at 4.080, my trading platform hi/low says the market hit 4.081(and closed me out) but their own graphs dont shot it hitting anywhere near 4.080.
    also i checked other sources and the high for that day was only 4.078.

    my question is, being new to all this is can they close your possition out even if the general price doesnt actually hit your target, should i be wary about who im trading with, or is this a regular pitfall amongst all trading platforms.

  2. What instrument are you trading?
  3. futures


    Natural Gas.
  4. 1) ?....did you compose your posting on a cellphone? :eek:
    2) Are you trading a "mini" contract but getting your trade signals from a "maxi", i.e. full-size contract? :confused:
    3) You may be trading through a bucket shop that "makes your market" to you instead of trading directly at the exchange? Your broker WILL attempt to "bag" your orders. :(
    4 It would be better to have your account at a "real" firm ASAP. :cool:
  5. futures


    hi, thanks for your reply.
    im posting from a PC, all looks ok from this side...
    not sure if my trading account is a mini, i guess it is, because im only risking pennies on each pip movement.
    the prices quoted do seem to correspond with other sources, its just the stop-loss numbers dont add up.
    another thing about the trading station im using is they dont appear to have any telephone helpdesk, only email.
    are there any websites that can accurately conform a days high/lows?
    also, can you recommend a reputable UK mini account where they wont try to rob me?
  6. Your stop may have been hit at ASK .
  7. Are you trading NG through NYMEX on GLOBEX. You can't be "robbed" that way like you can at a retail bucket shop. You just have to lose money the old fashion way - take a directional bet ahead of the weekly inventory report:D .

    Best way to resolve questions re what you think are bad fills is to contact your broker directly. If you need/want phone support switch to a broker that has it.
  8. futures


    i wish i had the knowledge to know what you're talking about.


    right now, im not using any stop-losses, because every time i do, even when i give it a wide birth, the market allways seems to find my stop.,
  9. assuming your trading exchange traded instruments, place your stop just below support/above resistance where you say "if price goes below/above x I am wrong" - there is nothing else you can do. Don't worry about HFT, GS, stop hunting, anything. Give your stop just enough room not to get shaken out by small moves but not so much that you take a big loss before you know you're wrong (I know, I know, easier said than done). Try using 2 ATR as a stop.
  10. Look at a 1-minute, bar chart of NG at ~9:30am (Chicago Time) today. :eek: :eek: :eek:
    #10     Apr 14, 2011