Confusion about SB practices - help!

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jharvey1000

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hello everyone I am new here. I'm also new to trading, and to forums...:)

I had my first day of live trading yesterday and in general the trades seemed to go fine (I gained some, lost more!). But later I observed with a a couple of markets/trades, that no matter which way a price was trending, immediately I opened a trade, the price started going the other way. Immediately.

In the end I put 4 more trades on - longs and shorts - just to confirm, and same thing. I stopped and tried it again some hours later - same.

Is this the way spread betting works?

I would assume that this can happen in live market sitn... but could it also be due to what I would term 'shady practices' ie SB firms doing more than they should be? Could it be an anti-scalping tactic (if that's the right word).

ive asked a couple of people about this already, but nobody wants to say anything concrete, i just get tantamount to a sales/PR pitch, or avoidance.

i'm hoping people here are gong to be real and give me the low down...

I appreciate any info that anyone might have to offer


Thanks.
 
jharvey1000 said:
hello everyone I am new here. I'm also new to trading, and to forums...:)

I had my first day of live trading yesterday and in general the trades seemed to go fine (I gained some, lost more!). But later I observed with a a couple of markets/trades, that no matter which way a price was trending, immediately I opened a trade, the price started going the other way. Immediately.

In the end I put 4 more trades on - longs and shorts - just to confirm, and same thing. I stopped and tried it again some hours later - same.

Is this the way spread betting works?

I would assume that this can happen in live market sitn... but could it also be due to what I would term 'shady practices' ie SB firms doing more than they should be? Could it be an anti-scalping tactic (if that's the right word).

ive asked a couple of people about this already, but nobody wants to say anything concrete, i just get tantamount to a sales/PR pitch, or avoidance.

i'm hoping people here are gong to be real and give me the low down...

I appreciate any info that anyone might have to offer


Thanks.
Click to expand...

Compare the prices you were given by the SB with the real market prices (which unless you're trading something very unusual, can be found online). If you can't find it online, post some trades here and we can check.
 
Shakone said:
Compare the prices you were given by the SB with the real market prices (which unless you're trading something very unusual, can be found online). If you can't find it online, post some trades here and we can check.
Click to expand...


Thank you very much. I'm rly pleased with your advice. (y)

I will come back for help if I get stuck finding the prices - prob not till tomo tho if that's all right cos errands / chores are calling...

thanks again.

You've made my first foray into forums (!) a pleasant success...
 
SB companies rely on your business,Therefore, why would they jeopardise that by rigging prices ?

They want you to trade as much as possible, they keep making money from the spread and eventually your account balance when you loose. They don't have to skew the prices, think about it.

Ive heard so many tales over the last year or so that ive been spreadbetting about skewed pricing, manipulated spikes on charts and so on. I can honestly say that i have never witnessed any of it first hand. This forum would be bursting at the seams with complaint threads if it were true.

The word " spreadbetting" is a bit like "timeshare", gets people running to the hills when mentioned. Saying that, Is there such thing as a honest broker ? Everybody is out to make money by whatever means, pushing ever closer to the what is lawful and what is not. look at the bank libor rigging case, banks trying to rip each other off. Its dog eat dog out there.. Maybe there are more Gordon Gekko's than you care to believe.

On the other hand, what better vehicle is there for trading the markets with a low budget ? A 1 pip spread on some of the major currencies, tax free, instant execution and limited slippage ?

Happy days init ?

( just my 2p worth ) :LOL:
 
jharvey1000 said:
hello everyone I am new here. I'm also new to trading, and to forums...:)

I had my first day of live trading yesterday and in general the trades seemed to go fine (I gained some, lost more!). But later I observed with a a couple of markets/trades, that no matter which way a price was trending, immediately I opened a trade, the price started going the other way. Immediately.

In the end I put 4 more trades on - longs and shorts - just to confirm, and same thing. I stopped and tried it again some hours later - same.

Is this the way spread betting works?

I would assume that this can happen in live market sitn... but could it also be due to what I would term 'shady practices' ie SB firms doing more than they should be? Could it be an anti-scalping tactic (if that's the right word).

ive asked a couple of people about this already, but nobody wants to say anything concrete, i just get tantamount to a sales/PR pitch, or avoidance.

i'm hoping people here are gong to be real and give me the low down...

I appreciate any info that anyone might have to offer


Thanks.
Click to expand...

This is almost certainly nothing to do with the firms "rigging" prices and is likely down to the fact that your trade entry is poor. If you are new to trading, you shouldn't be surprised if the market seems to go immediately against you!
 
Last edited:
jharvey1000 said:
hello everyone I am new here. I'm also new to trading, and to forums...:)

I had my first day of live trading yesterday and in general the trades seemed to go fine (I gained some, lost more!). But later I observed with a a couple of markets/trades, that no matter which way a price was trending, immediately I opened a trade, the price started going the other way. Immediately.

In the end I put 4 more trades on - longs and shorts - just to confirm, and same thing. I stopped and tried it again some hours later - same.

Is this the way spread betting works?

I would assume that this can happen in live market sitn... but could it also be due to what I would term 'shady practices' ie SB firms doing more than they should be? Could it be an anti-scalping tactic (if that's the right word).

ive asked a couple of people about this already, but nobody wants to say anything concrete, i just get tantamount to a sales/PR pitch, or avoidance.

i'm hoping people here are gong to be real and give me the low down...

I appreciate any info that anyone might have to offer


Thanks.
Click to expand...

Those who buy on momentum have this problem. Momentum runs out and reverses. This is where very short term traders, ie those who make dozens, if not hundreds of trades per day and scalpers, make their money.

I have not caught my SB co. out, yet, and I have been trading with the same one since Day 1, over a decade ago.

That does not mean to say that one should not be watchful, though.

Watch out for thin trading over this, and other holidays. There was a very big spike, in both directions, yesterday.
 
Splitlink said:
Watch out for thin trading over this, and other holidays. There was a very big spike, in both directions, yesterday.
Click to expand...

Yes the FOMC whipsaw was brutal.

Low liquidity spikes can be particularly nasty in Forex and the problem is compounded because of the decentralised nature of the market.
 
Last edited:
If jharvey1000 was trading, yesterday, at about that time, he learned a hard lesson, but that goes on all the time, although, mostly, to a lesser extent.
 
kingsparkle said:
This is almost certainly nothing to do with the firms "rigging" prices and is likely down to the fact that your trade entry is poor. If you are new to trading, you shouldn't be surprised if the market seems to go immediately against you!
Click to expand...


Thanks for the feedback.

The more studying and live trading I've been doing, the more I see its poss.

I would like to know for sure tho (like Shakone suggested - checking the market prices, and getting the opinions of experienced traders) so I know whether to have confidence in the SB firm I'm using, or chg them.
 
Splitlink said:
Those who buy on momentum have this problem. Momentum runs out and reverses. This is where very short term traders, ie those who make dozens, if not hundreds of trades per day and scalpers, make their money.

I have not caught my SB co. out, yet, and I have been trading with the same one since Day 1, over a decade ago.

That does not mean to say that one should not be watchful, though.

Watch out for thin trading over this, and other holidays. There was a very big spike, in both directions, yesterday.
Click to expand...


Thanks for your post, and feedback. Certainly its all helping refine my methods. Esp your advice re trading over the hols.

After riding that bucking bronco following the FOMC announcement :clap: I think I may just sit the hol season out (or maybe jst a CAREFUl little flutter..._



Any chance of saying which SB co you use? its good to know well recommended ones (u could pm me if ness)
 
I trade with Finspreads but I am not trying to push them, particularly. There are, probably, others better but since I have never tried them, I don't know and my experience is that if the service is satisfactory, stay put. Pretty much like a bank account.

In my previous post, I mentioned a spike. I hope that you checked it out because that is what I meant. The markets have made some good moves over the holiday period and I don't want to put you off, but thin trading will give markets more opportunity to clean out stops than on normal trading days and you should be aware that that can happen.
 
Last edited:
Splitlink said:
If jharvey1000 was trading, yesterday, at about that time, he learned a hard lesson, but that goes on all the time, although, mostly, to a lesser extent.
Click to expand...


I sho whuz (my American accent is terr, you'll have to use your imagination :)) trading at around that time, at exactly that time, and talk about exciting...

I was trading from about 6.30pm, completely unaware of what was coming, just poodling along, managing my little trades.

Suddenly jst before 7pm evythg went crazy. The grid went into spasm, flashing lights, prices zipping. At first I thought 'what the... the thing/system/sites broken... Then I realised it was for real and – adrenalin rush!

From my hand clap in the previous post you prob think I scored big. Well, er, no :D

Well... I was ok and then I jst had to push it didnt I, with one trade. And not even with the same low risk I was trading but with one of the temperamental volatile mkts that I should have long ago binned. My mind was saying stop but I thought just one more – and it turned and bit me, I lost the lot and more in the blink of an eye. Ha ha :rolleyes:

gd thing im only trading small, so didnt break the bank, but it was still annoying, and a gd lesson - stick to the plan. And also ensure I know what The Plan (strategy) is off by heart, so I dont get sidetracked by flashing lights and a 'come hither'... :D

(I did scoop a little back with more trades that evening, still taking advantage of the prices)

bt it wasnt about the money, it was just exciting to see, and be in it (well I guess it was bout the money cos I didnt have much to lose so I wasnt p***ing myself)

but more seriously, it showed me for the 1st time how what I thought was the boring economic calendar and financial events such as this affect markets.

anyway good news, on 20/12 traded google jun 14, 20p long @ 109357, just before it spiked, closed @110627 ... pity it was just demo trading :LOL:
 
Splitlink said:
I trade with Finspreads but I am not trying to push them, particularly. There are, probably, others better but since I have never tried them, I don't know and my experience is that if the service is satisfactory, stay put. Pretty much like a bank account.

In my previous post, I mentioned a spike. I hope that you checked it out because that is what I meant. The markets have made some good moves over the holiday period and I don't want to put you off, but thin trading will give markets more opportunity to clean out stops than on normal trading days and you should be aware that that can happen.
Click to expand...


I am pleased to hear finspreads have been dependable and satisfactory over a long time period, its always good to get personal pov. thank you.

yes there have been some rly gd moves in the mkt, and it seems to provide a lot of potential trading action. do u mind if I ask what is 'thin trading' and how does it clean out stops differently to normal trading
 
There are more experienced traders than I who could tell you a more about it but, when there is low volume it takes little (still, a hell of a lot at our level) to buy into the market or,maybe, closing out open trades, to move the price a lot, either way, This can happen at any time. There can be good volume for much of the day and ,then, a slack period comes (thin trading) to make a spike move up, or down, and back again and which triggers all the stops. It, often takes less than a few minutes. What you were asking in your first post, happens all the time, moving one way and, then reversing. They are not spikes but, still, the same sort of thing on a smaller scale.

I'm not, really, into teaching. You'll have to get more details from someone else. :)
 
Splitlink said:
There are more experienced traders than I who could tell you a more about it but, when there is low volume it takes little (still, a hell of a lot at our level) to buy into the market or,maybe, closing out open trades, to move the price a lot, either way, This can happen at any time. There can be good volume for much of the day and ,then, a slack period comes (thin trading) to make a spike move up, or down, and back again and which triggers all the stops. It, often takes less than a few minutes. What you were asking in your first post, happens all the time, moving one way and, then reversing. They are not spikes but, still, the same sort of thing on a smaller scale.

I'm not, really, into teaching. You'll have to get more details from someone else. :)
Click to expand...


What you've explained here is very informative and has sent me off digging for more info, and clarified a couple of things. Thanks.

Has anyone had time to look at the trades i posted 22/12 to see if they were the actual mkt prices at the time pls?

Thanks to evyone who has commented and advised. There will be more questns etc in the new yr (a lot of stupid questns no doubt - apologies in advance).

Wishing you all a merry xmas (for non xmas-ers : Bon fete / Compliments of the season /Have a good one).

And a happy new yr :)
 
jharvey1000 said:
What you've explained here is very informative and has sent me off digging for more info, and clarified a couple of things. Thanks.

Has anyone had time to look at the trades i posted 22/12 to see if they were the actual mkt prices at the time pls?

Thanks to evyone who has commented and advised. There will be more questns etc in the new yr (a lot of stupid questns no doubt - apologies in advance).

Wishing you all a merry xmas (for non xmas-ers : Bon fete / Compliments of the season /Have a good one).

And a happy new yr :)
Click to expand...

You are welcome and the same to you.

I would not risk cash now until after the New Year, when things will start to come back to normal, again.
 
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