To be DEAD... or to be ALIVE... that is the forex question...
Hello taders,
Hope that you are taking trade in this moment with the currency CHF...
For me I’m surfing actually with eurchf… in an up trend…
The momentum is just crazy!
I would like to take this point to prevent some traders that forex is a good way to win money… or a good way to be ruined !
Look what happen in january 2015… a big flash crash.
Be be be careful about the forex.
Some traders say that the stop loss can protect them.
False !
In a flash crash or in a big movement such as news for instance, your stop loss do nothing, because nobody are present to buy your position if you want to sell it (and vice versa)… and the price go go go go against your position !
The january of 2015 was murdered for lot of traders and brokers.
Lot of traders are lost more than their capital ! And have to paid their broker… if they can…
Tragedy in fact…
Nevertheless, there is a good way to prevent you for flash crash… it ‘s to subscribe to an account guaranteed with your broker (if your broker offer this opportunity) ! This account work with stop loss GUARANTEED. The mechanism is the next: let’s take the example of EURCHF in january 2015 : Imagine that at the morning, you have unfortunately opened an up position at 1.2014 with a stop loss at 1.1940. Four hours later, your stop loss is finally executed under -2000-3000 pips of your stop loss. But if you have a trading account with stop guaranteed, your stop loss was executed at 1.1940… loss only of 74 pips. The difference between your stop loss guaranteed and the real execution of your stop would have been paid by your broker… it is contractual.
Of course, if your broker can’t honor this, he does bankrupt. But he can’t attack you.
Understand that an account guaranteed is a sort of insurance like your car or home insurance for instance. Of course, with an account guaranteed, the spread is much higher compare to a normal account. But all your stop loss will executed at YOUR price exactly. The difference (your stop and the real execution of the stop) will be paid by your broker.
So, to conclude all the broker’s don’t offer account guaranteed. Some of them do it. Take a look of the broker’s offers and choose the way to be safe !
Good week
Bye
Hope that you are taking trade in this moment with the currency CHF...
For me I’m surfing actually with eurchf… in an up trend…
The momentum is just crazy!
I would like to take this point to prevent some traders that forex is a good way to win money… or a good way to be ruined !
Look what happen in january 2015… a big flash crash.
Be be be careful about the forex.
Some traders say that the stop loss can protect them.
False !
In a flash crash or in a big movement such as news for instance, your stop loss do nothing, because nobody are present to buy your position if you want to sell it (and vice versa)… and the price go go go go against your position !
The january of 2015 was murdered for lot of traders and brokers.
Lot of traders are lost more than their capital ! And have to paid their broker… if they can…
Tragedy in fact…
Nevertheless, there is a good way to prevent you for flash crash… it ‘s to subscribe to an account guaranteed with your broker (if your broker offer this opportunity) ! This account work with stop loss GUARANTEED. The mechanism is the next: let’s take the example of EURCHF in january 2015 : Imagine that at the morning, you have unfortunately opened an up position at 1.2014 with a stop loss at 1.1940. Four hours later, your stop loss is finally executed under -2000-3000 pips of your stop loss. But if you have a trading account with stop guaranteed, your stop loss was executed at 1.1940… loss only of 74 pips. The difference between your stop loss guaranteed and the real execution of your stop would have been paid by your broker… it is contractual.
Of course, if your broker can’t honor this, he does bankrupt. But he can’t attack you.
Understand that an account guaranteed is a sort of insurance like your car or home insurance for instance. Of course, with an account guaranteed, the spread is much higher compare to a normal account. But all your stop loss will executed at YOUR price exactly. The difference (your stop and the real execution of the stop) will be paid by your broker.
So, to conclude all the broker’s don’t offer account guaranteed. Some of them do it. Take a look of the broker’s offers and choose the way to be safe !
Good week
Bye