The Captains Chest - Naked Trading & Other Stuff

Post by **sympathy** » Thu Nov 26, 2015 8:58 am

Taking profit on the buy side

Post by **szfxtrader** » Thu Nov 26, 2015 9:10 am

I was thinking that it will go up again today.

sympathy » Thu Nov 26, 2015 8:58 am wrote:Taking profit on the buy side

Post by **sympathy** » Thu Nov 26, 2015 9:16 am

szfxtrader » Thu Nov 26, 2015 10:10 am wrote:I was thinking that it will go up again today.

sympathy » Thu Nov 26, 2015 8:58 am wrote:Taking profit on the buy side

Yea me too but i need to take what is given

Post by **szfxtrader** » Thu Nov 26, 2015 9:24 am

sympathy » Thu Nov 26, 2015 9:16 am wrote:
szfxtrader » Thu Nov 26, 2015 10:10 am wrote:I was thinking that it will go up again today.

sympathy » Thu Nov 26, 2015 8:58 am wrote:Taking profit on the buy side
Yea me too but i need to take what is given

You are right, well done.

Post by **sympathy** » Thu Nov 26, 2015 9:45 am

Post by **marcoFF** » Thu Nov 26, 2015 10:29 am

One thing I want to be sure that everybody understands about these pins. Most times, when they print, they are the result of spread widening. They increase the distance between the bid and ask by 5-8 pips or more. The effect of this is to trip stop loss and buy or sell stops, putting people into bad trades, or causing a loss. When they do this, your TP or SL orders will not be hit as a result of the wide spread. This is important here because so many people use pending orders and stop loss or trailing orders.

This is the same thing that happens at the end of the day. If you want to see it in action, load up a broker who is offering an ECN feed, open an order box near right before 5PM est and watch the bid ask price as the day ends. These are the market makers hitting the stops. I have seen 60 pip spreads when they do this.

Since I place and manage all of my orders, I use market order for entry and exit and very seldom set a stop. I actively manage my trades and do not give them a chance to take an order from me or put me into an order going the wrong way.

CJ

Can someone please explain me why the SL and TP will not be it as result of the wide spread?
Thanks

Post by **forexgeeker** » Thu Nov 26, 2015 5:22 pm

marcoFF » Thu Nov 26, 2015 6:29 am wrote:

Can someone please explain me why the SL and TP will not be it as result of the wide spread?
Thanks

Did you ever had an open trade with SL/TP has been set,then price passed through it but never get triggered?Or did you ever have a pending order that got triggered eventhough price 'obviously' doesn't reached that level where you set it?That is what this spread widening is all about.

ie you have an open trade with 10 pips SL,then price moved against you and it is now 3 pips away from your SL.On that time spread is normal let say 2 pips.But then due to some reason(news,etc)the spread suddenly increased to 10 pips.So,eventhough you see price is now 3 pips away from your SL,in reality price is already beyond your SL level.Then it just moved pass your SL and ignored it,because the 'real' price level is already 10 pips away.It's like a magic trick,an illusion..

Post by **marcoFF** » Thu Nov 26, 2015 5:35 pm

forexgeeker » Thu Nov 26, 2015 6:22 pm wrote:
marcoFF » Thu Nov 26, 2015 6:29 am wrote:

Can someone please explain me why the SL and TP will not be it as result of the wide spread?
Thanks
Did you ever had an open trade with SL/TP has been set,then price passed through it but never get triggered?Or did you ever have a pending order that got triggered eventhough price 'obviously' doesn't reached that level where you set it?That is what this spread widening is all about.

ie you have an open trade with 10 pips SL,then price moved against you and it is now 3 pips away from your SL.On that time spread is normal let say 2 pips.But then due to some reason(news,etc)the spread suddenly increased to 10 pips.So,eventhough you see price is now 3 pips away from your SL,in reality price is already beyond your SL level.Then it just moved pass your SL and ignored it,because the 'real' price level is already 10 pips away.It's like a magic trick,an illusion..

Thank for the explanation, but widening the spread it can ignore the SL\TP but trigger the pending order?
In your example the in the "real" price my SL is 3 pips away, but in the "spread price" i'm at -7 pips?!
What i see on the platform isn't the "real price" so including the spread?
Thanks,
Marco.

Edit: or it's like the spread "jump" all the previous price level? So my SL\TP level never exist and so it can be triggered? In that case i continue to dont understand why the pending are triggered..

Post by **forexgeeker** » Thu Nov 26, 2015 5:57 pm

[quote="marcoFF » Thu Nov 26, 2015 1:35 pm"][/quote]

Yes,it's like jump away from your SL.In this example price is 3 pips away from your SL.Spread widened to 10 pips.Let say price keep moving against you till it reach your SL level(assume that spread still at 10 pips),so thats mean it is already 10 pips away from your SL level.That is why it never got triggered.Then price keep moving away from your SL and spread back to normal.So it already beyond your SL.

It is different with pending order.When spread is widen it is to make Mr Fox job easier.They don't need to push price to the exact lvl where a lot of pending order waiting to trigger it.All they need to do is move closer to it,widen the spread,hit the order and run...Against them.

That way they can save their capital.

Edit:forgot to mention,let say thousands of trader also have their SL at the same lvl as yours or somewhere near it,mr fox will widen spread so they can push price further without hitting SL's,resulting bigger loss to the trader.

Post by **marcoFF** » Thu Nov 26, 2015 10:59 pm

Thanks for the explanation!

2015-11-26_2355.png

Have any sense?