I would like some opinions on this. (Not a demo account)
Monday 10/17/05: Charts indicating downtrend in EUR/USD after Friday's pop into 1.2100 area. Easy to see.
Mid morning I'm short at 1.2057. Market drops below 1.2030 within about a couple of hours. My stop loss is at 1.2060.
Market begins to retrace and I exit at 1.2037. 20 pip winner.
I walk away for an hour to take care of some other business.
When I return I'm thinking sell again if market conditions are right.
Market is now trading just above 1.2000 and I'm waiting for a break below to go short again. When I open my deal station I notice that I am long at 1.2060 and suffering close to a 60 pip loss.
My immediate reaction is WTF?? I didn't go long at 1.2060. Didn't take much time to realize that I had forgotten to remove my stop loss at 1.2060 on my earlier trade and I was filled at that price. My mistake. But I'm still wondering how in the hell does a stop loss order become a limit order if the original order is exited and the stop not removed?? Is this a common thing with all FX brokers??
Stupidest damn thing that I ever heard of. If you are flat how can a stop loss even exist? I used to trading futures where if I'm flat, there is no possibility of a stop loss being filled.
Because some people use a stop order to get into a position. Your broker takes an order, he doesn't know what other positions you may have on.