it really is rigged against the small retail investor.
some news is released 3min before to large institutions who can afford to pay large premiums for this service before the rest of us get to hear it.
so when i say stay out i mean stay out before news,let the big boys fight each other,then when the market settles look to enter.
i remember when i first started trading about 3yrs ago,i short a position,it goes up stops me out for 20-30 points,i then go long and guess what,Good point and nicely spotted. Event trading isn't quite a mugs game but it is if you're trying to catch the trend as the news comes in. Haven't you ever been charting at the moment an economic release is made and seen the trend start to form BEFORE the actual data is due to hit?
Nevertheless if you're swing trading or scalping the timeliness of your trade in relation to the data release isn't the be all and end all.
Nice thread, I think you may have inspired me to start my own.... if I can be bothered.
The market is wonderful isn't it. It encourages you to do the thing that will lose you the most moneyi remember when i first started trading about 3yrs ago,i short a position,it goes up stops me out for 20-30 points,i then go long and guess what,
it reverses and takes me for another 20-30 and im fuming.i would have been better sticking with my first position and been losing nothing now,instead i have doubled my losses.or i should not have tried the second in a revenge trade and would have only lost half.
time and time again this would happen.and when i stopped using stop losses,guess what-it just kept going against me now taking me for 50-100 points or as much pain as i could bare.
its maddening,how does the market know which side im on!
i start talking to people telling them its rigged and im told im paranoid.
then theres this news out saying that actually some institutions do recieve news before its released to the public also on youtube theres someone saying the brokers know where the stops are and with a single touch of a key,spike them out.so my paranoia isnt totally unfounded i know im being handicapped but by how much.those 2 instances we know,how much more do we not know? in my mind,i wouldnt be surprised if these brokers havent developed artificial intelligence already.feeding us charts which carry on as normal until the minute you enter a trade,then they alter reality and show you your worst nightmare until you cut your trade with a loss.then they go back to normal to entice you again.
but back then i was also handicapped by my own lack of knowledge,without a plan/strategy and experience adding to my paranoia.
fk i could write a book!
anyway im glad if ive inspired even 1 person.you should write.others might chime in with their 2pence giving you food for thought which might give you ideas to look at things differently or look back and think wtf was i thinking!
its like discovering sex for the very first time and chasing everything and anything that moves.but with experience you learn to be more patient and only go for ones you think you stand a chance of success with and even then not to splash out too much and be prepared to cut your losses.The market is wonderful isn't it. It encourages you to do the thing that will lose you the most money
perhaps the one or two that do turn around after i have cut them are the ones that are foremost in my mind and stop me from cutting others which then i let get out of hand.its a real head fk.As soon as you say to yourself "I should cut this now" do it on paper even if you can't bring yourself to do it for real.
Then compare the results. One or two will have turned round, but you'll soon see the truth staring you in the face. It's a short step from there not to think of the cuts as "losers" but as "winners" from a money management perspective.
when i first started trading i had a stop of 20 but after seeing them spiked out repeatedly (sometimes even for more 30,40 as not guaranteed unless you pay extra spread),and then to see that spike fade really used to **** me off.so i stopped using them and cut them manually when the pain got intolerable.Barjon's suggestion is a good one.
I am also curious what your initial stop is. When holding a losing position you may feel anxiety, and it's hard to think clearly. So a stop should be placed when you are thinking clearly, at the outset of a trade. You can cut a loser before the stop is hit, but it should always be there.