Secrets of your broker - page 3
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What is a Mental Stop Loss?
Normally, when you place a stop loss, you do so in your platform, where your broker can find out about it. A mental stop loss is one that you do not physically place in your platform and it cannot be closed automatically.
Let's say you open a long on the EUR/USD at 1.16000.
You could place an automatic stop which will close the position as soon as the price reaches 1.15950, or you could use a mental stop loss. Remember though, when using a mental stop you need to monitor your position, as instead of a normal stop loss you will now set alarms, which will signal to you when the market is close to your stop loss level. And then when your alarms go off, you need to go back to your computer and closely monitor the position to decide whether or not to close it.
How to set a Mental Stop Loss? You need to do a few things.
Figure out what your risk limit for the position is
. If you are not going to sit at your computer, set an alarm a specified number of pips before your maximum risk level is reached.
That's basically it. You want the alarm to give you a little advance warning before your stop level is reached. If the price moves fast, you will know it can go quickly further, and that is a potentially dangerous situation. Of course, the level at which the alarms are set depends entirely on your situation. If you're going to bed, you should set more alarms. If you're just surfing on youtube, less (because you're nearby).
But if you are going to follow the position without taking a break, it is clear that you do not need alarms at all.
And if you can't predict for a lesser amount of time, then of course with 1:500 leverage you don't stand much chance. Self-mastery must not just be at the highest level. You need years to hone your trader's psyche. Pips trader almost all (if not super experienced) have red lines in their accounts in statistics, and fewer green ones. This is not how one trades at the exchange. If you use a stop loss, more than 50% that your position will be taken out feet first (because you can't put it very far). If you trade long/medium term, you have a chance of making money. In this case, you do not need a stop loss.
But when you have serious capital and don't need to use leverage, when you trade on a 1:1 margin. That's when a stop loss can be part of your strategy. As long as you are a small speculator, all your stop losses will be hit by the price and it will continue moving in the right direction, but without you.
It has positioned itself in the market since 1992 as a leading international bank, specialising in online investments in the international capital markets. Saxo Bank offers its clients the opportunity to trade currencies, shares, CFDs, futures, options and other derivative instruments; it also provides trust management services.
Along with the merits of Saxo Bank as a broker, there are some drawbacks which make you to think twice before dealing with them. There are some negative aspects in the process of trading, and regularly. One of the significant disadvantages is that traders' stops are knocked off.
One time is an accident. Two or more times - pattern.
Readers should note what Saxo Bank writes about itself (advertised on the home page of http://www.saxobank.com/ ) :
Saxo Bank specialises in providing professional services in the international capital markets, offering private traders and financial companies the most advanced investment and cooperation models.
Saxo Bank is a licensed financial institution with full banking status. The Bank operates under the supervision of the Danish FSA, the highest financial regulatory authority in the European Union.
According to independent forums, there is an opinion that their managers are very active in attracting new clients, calling frequently and asking "how are you doing" etc.
And when you open an account the situation changes, the attention to the trader gradually diminishes and is reduced to zero. And then questions and emails are answered reluctantly and later forgotten altogether.
Also inconvenient is their own platform (only the Internet Explorer 5.5 browser is used, it often freezes). In addition, it is not possible to place a stop loss far away due to technical limitations. There are also other annoying features. For example, in SaxoTrader there are messages with an unclear content, such as "this bank sells to such and such a level".
Forex fees and commissions are also not trivial: the commission is charged at 10USD to cover administrative costs when executing transactions with currencies below the minimum volume (minimum Forex lot 5000).
Serious doubts are caused by the company's contract which is provided in English only. Therefore it is difficult to know the details of the contract. The only thing that was mentioned by the manager of the company is that the agreement is "standard" and they disable access one minute before the news and turn it on after the news.
The above facts make it clear what "professional" services the bank specialises in and what "perfect" models of cooperation with clients are offered. What is also particularly noticeable is how closely the FSA, the EU's supreme authority for financial regulation, monitors the bank.
The bank has a strong advertising department: if you lose the Sachsobank link, you will find it easily in the many advertisements on the Internet. The customer service is excellent: they will politely and culturally advise you on anything before you open a live trading account, call you back repeatedly and ask if you have any problems when transferring funds to them.
Great technical support: they are always calling to see how things are going and send greeting cards.
You might be more suited to an audio/video forum.
Good night everyone. Get some rest before the opening of trading. We still have EUR/USD drawdown to endure for at least the whole week. I would be glad if I was wrong. :-)You don't like to read...
You might be more suited to the audio/video forum.
Good night everyone. Get some rest before the opening of trading. We still have EUR/USD drawdown to endure for at least the whole week. I'd be glad if I was wrong. :-)You don't like to read...
here's my EUR/USD pose
and you're patient.
here's my EUR/USD pose for you
And you bear with me.
It is impossible to accurately calculate when the price will continue moving downwards. It can only be seen in the fact. Therefore a Sell Stop is necessary. But at a reasonable distance so as not to be affected by the "noise".
When the correction is over, the Market will open the Sell Stop by itself. All the drawdown will be repulsed by the continuation of the trend. And minus on the drawdown position will be melting at double speed. By the way, this will also increase the volume. For me, the further correction - the better. Because the market has been moving in one direction for too long. And the correction is necessary to increase the volumes by opening new positions on the pullbacks, rather than by opening greedy positions of one and a half lots at a time.
Practically, it is a win-win tactic (if the trend is still in force). Proven not only by my experience, but also by the experience of many successful traders. All that is required is psychology.
And all you can see from your screenshot, is that firstly you are trading against the main trend. If the market opens on Monday with decrease, most of the "fixed" profit will melt away. Secondly, if the price goes against you (down), then the question is, what are you trading for? Your stop is in the breakeven zone, but what is the point of this operation? Instead of locking your profit before closing on Friday night, you left the position for the weekend with a far-out stop.
In your situation you should now proceed as follows:
Suppose the market does not jump too much at the opening on Monday and does not go straight down. This is your chance to pull up your stop higher, so if it already goes, at least you will fix some profits. If it will continue to grow anyway, protect your profit and pull up the stop. Along with it, pull up and Sell Stop, so as not to miss the movement.
You should not have left this position for the weekend.
Well firstly, it is not clear what your answer is when you are asked why you open stops, you know that stops are a direct route to losses and rarely to profits.
Secondly, if you do not know how to take profit, maybe the market is not for you? And the third, you need a good broker or bank to work well. Without it the trade is doomed to failure.