I'm sure this is old news to many. I have been watching the news feed (IFR markets?) on Oanda. When checking their position summaries, it seems they can't pick their nose. The majority of the calls are late or inaccurate. Just my opinion, and, yes, I took a long position (USD/JPY) this a.m.. got stopped out. That should teach me!
To further explain, I went long at 102.78 with a stop at 102.27, I had calculated the stop at approx 1/2 ATR. Any thoughts on that method of stop placement?
Yes I have found that a good deal of the calls on IFR are not that good. Most of the trade recommendations are geared toward longer swing trades than the daytrade/all day trade that most of us look for. It amazes sometimes how they have stops in their trades and the price moves thru it, but their trades "survived" the stop rather than be closed out. Take IFR for what it is - a source for sentiment and news headlines. Don't take their trade rec's for gospel.
How does one "survive a hit" on a stop? Maybe if the price is touched, but not traded through? Regardless, agreed on giving them any credit. My stop may have been relatively tight, and my target was 103.95, but I'm trading a small account, so I'll hide and watch for awhile.
Understand that on systems like Oanda and other dealing desk platforms, if your stop price is touched, you will be closed out. It's an accounting thing on their system; they really don't need to find a buyer/seller to offset your trade. Check out limit orders - if the trade gaps up on Sunday open, say 30 pips above your price, you'll still be closed out of your trade at your limit, even tho the market never really traded at that price because of the gap up. * not saying IFR uses Oanda to trade, just commenting on your current platform of choice.
Good info, thanks. . On the long term, I was looking for a reversal on the USD/JPY daily charts. I'll have to consider wider stops to keep out of the daily noise. It would seem the rest of the financial community is not conviced of Bernanke and Co.'s cranking of the $ printing presses.