Stops

[Splitlink]

This afternoon, in Barcelona, we had an internet crash for 30 minutes. It's a reminder to all you new guys not to forget to put stops on all your trades. It is peace of mind to know that your trade is secure that way.

This is something over which there is no control, apart from ringing up--if you can get through.

Apart from that---Good trading!

 

[timsk]

Good advice Split'.

I do envy you living in Barca - great city and great weather. We've had a dry spell with some sunny days here in blighty over the last few weeks - but it's turned wet again with more wintery weather on the way.
Tim.

 

[Splitlink]

Good advice Split'.

I do envy you living in Barca - great city and great weather. We've had a dry spell with some sunny days here in blighty over the last few weeks - but it's turned wet again with more wintery weather on the way.
Tim.

I have to say that you are right, Tim! Like me, not always, but this time yes!

I, always, beat the drum for this city and Catalans, who have made me feel at home over the years.

Barça (pronounced Barsa and spelt like that in Catalan) is the name of the football club. When a Spaniard, especially a Catalan, says that, he is talking about the club. We always say Barcelona, often written as BCN, nowadays.

The weather never seems to hit BCN as severely as outside. But, believe me, Northern Spain and Cataluña have had extreme snow conditions this year. Now, there is a bit of a thaw setting in and the flooding is starting.

The weather conditions seem to be affecting the web, though, which was the reason for my post. You never know, these days!

 

[tomorton]

Timely reminder about Stops Split - my Internet Explorer decided to stop working this morning for about 3 hours. Closing, re-booting and re-starting didn't help. Never done it before. Then it just decided to work again for no reason I can see.

Luckily its a Saturday and Chrome kept working as a back-up, but these technical issues do happen.

I know I need to do something about the PC anyway - its chugging hard, the clock keeps drifting off and the power switch doesn't always work. Seems like the time could be at hand.

 

[mike.]

its funny that nobody mentions " guaranteed stop losses " For the measly price of one pip/point extra you can completely secure your trading account against any black swan events like last month.

Stops are just a market order, price has to hit it for it to be of any use, in the event of gapping and price leapfrogs your stop, then you are at the brokers mercy. Like many have found out.

 

[lawrence-lugar]

This afternoon, in Barcelona, we had an internet crash for 30 minutes. It's a reminder to all you new guys not to forget to put stops on all your trades. It is peace of mind to know that your trade is secure that way.

This is something over which there is no control, apart from ringing up--if you can get through.

Apart from that---Good trading!

You should have a backup internet source...like buying an Apple Ipad with the cellular carrier internet option.

 

[tomorton]

what?

 

[ibetyou]

what?

You know Tom, if you hurt your eye you would put one of these over it.
But i must say i had know idea you would get a better internet connection.
You learn something new everyday on here.

As for stops i never trade without one, Guaranteed always.
1/ For piece of mind,
2/ So i can workout if there is enough profit in the trade as i like a 3/1 return.
3/ ones trade is placed i go away and leave well aloan.
and before you all ask yes i set a target to get me out.

And as it,s been said many times on t2w the art of trading is good entry and exit points.

Where to place them is the art of trading.

 

[neil]

Black Swan Insurance

its funny that nobody mentions " guaranteed stop losses " For the measly price of one pip/point extra you can completely secure your trading account against any black swan events like last month.

Stops are just a market order, price has to hit it for it to be of any use, in the event of gapping and price leapfrogs your stop, then you are at the brokers mercy. Like many have found out.

@Mike

So very true yet overlooked by many

 

[Forexmospherian]

its funny that nobody mentions " guaranteed stop losses " For the measly price of one pip/point extra you can completely secure your trading account against any black swan events like last month.

Stops are just a market order, price has to hit it for it to be of any use, in the event of gapping and price leapfrogs your stop, then you are at the brokers mercy. Like many have found out.

Hi Mike

Guaranteed stop losses are another grey area

Spreadbetting companies can guarantee them - as they use their own book and also can charge an extra 3 pip spread for the service.

However - STP / ECN brokers - different ball game

For example on DUkascopy -

Do you guarantee the execution of stop loss orders?
Dukascopy Bank guarantees the execution of Stop Loss orders. However, during fast markets or gaps, there is a risk of large slippage.

Using a ECN broker with no dealer desk and your entry going straight into the market with say FX trades - your guaranteed stop - could still be 10 or 20 or even 200 pips from where you might want it to activate - as large slippage means you will be gapped.

I have never had the argument with any ECN broker on this particular issue - yet - and I have used 3 different ones in last 2 years.

Its a grey area - but not with the old bucket shop / spreadbetter who is not placing your order in the real market - but dealing with it internally etc etc

I have always known I had negative balance cover with good ECN FX brokers - but have not bothered with paying extra for guaranteed stops just purely for real black swan events.

If you have a good relationship with your broker and make them good money from all the trades you take with them - then normally they will play ball - as no decent broker wants to lose good multi traders on decent lot size - as they make them nice profits.

Maybe Highbury FX can clarify this issue on guaranteed stops ??


Regards


F

 

[Splitlink]

I can't see the point of struggling to find the broker with the best spread and, then, giving them a 3 point guaranteed stop. Of course, I don't have a degree in economics.

I have been SBetting with the same firm for ages. Ordinary stops have never been a problem for me, except on a spike, where I have been willing to accept that slippage may have been more.

There's always a first time, of course. I need to keep my fingers crossed for that!

 

[Forexmospherian]

I can't see the point of struggling to find the broker with the best spread and, then, giving them a 3 point guaranteed stop. Of course, I don't have a degree in economics.

I have been SBetting with the same firm for ages. Ordinary stops have never been a problem for me, except on a spike, where I have been willing to accept that slippage may have been more.

There's always a first time, of course. I need to keep my fingers crossed for that!

The perfect scenario is to use one click entry and exit for short term intraday trading with a so called "soft" stop - that you set and exit yourself when breached with a proper hard guaranteed stop set farther away - ie 25 -40 pips away from your action - that is guaranteed to work - what ever the PA - ( even in a rare black swan event ) that may cost even 1 to 5 pips extra - BUT you only get charged if its activated.

Then that would be your extra "safety net" so even if you had say $100k + in your capital account and the broker guarantees no "negative balance cover" you then do end up losing it all on a massive 1500 - 3000 pip very rare black swan event - like the one we had with the Swiss Central Bank in January.

Just my thought and view.

Regards

Good Trading


F

 

[spinola]

And reduce leverage, especially in these times of increased volatility . So reduce to say 200-1 . <TITTER>


Stops are for buses, and pin bars for legs !


I'm going to work at Goldman.

 

[mike.]

Hi Mike

Guaranteed stop losses are another grey area

Spreadbetting companies can guarantee them - as they use their own book and also can charge an extra 3 pip spread for the service.
F

Agreed, there not much use in your strategy for scalping 5-10 pips, My broker offers them for a 2 point charge but, theres a minimum distance of about 30 points away on some securities.

It really opened my eyes the spike after the black swan in january, I have learned a valuable lesson, risk management is key.

Its sad that ive had to learn through the misfortune of reading other traders tales of woe though,

 

[stefcio2002]

This afternoon, in Barcelona, we had an internet crash for 30 minutes. It's a reminder to all you new guys not to forget to put stops on all your trades. It is peace of mind to know that your trade is secure that way.

This is something over which there is no control, apart from ringing up--if you can get through.

Apart from that---Good trading!

Another point is to always have the customer's support phone number at hand. If you have to give a phone call, you may bet it is going to be for an urgent problem, so have this number ready in advance in your GSM !