New To Spreadbetting

[trader_dante]

no it doesnt at all mean that. it could mean he may not be taking profit quick enough and/or not managing risk when that should happen.

I don't think it means that but lets agree to disagree.

Perhaps thomas18 can settle it if he ever sees this.

 

[new_trader]

Are you being serious?

JK

Yes.

 

[jkplay]

Yes.

Interesting technique.. Tight stops in my view create a nasty cocktail of regret and frustration.

I think it's a golden rule not to set tight stops, particularly if you are new to spreadbetting.

JK

 

[thomas18]

Hi, thanks for all the chat and opinions and I would have to agree with trader_dante that my stop losses might be too tight. I have also been guilty of not taking profits at the right time.

 

[Splitlink]

sorry, i think you're WRONG

firstly, you cant ever never ever tell someone where to place their stop - should they chose to have one.

secondly, risk management (stop placement) is often related to the strategy, win rate, objective of the trade, market conditions such as liquidity etc (ok not so relevant with an sb), probability, etc.

thirdly, if you go placing your stop at such blindingly obvious places like at the bottom of what currently seems to be a double bottom in your eg (ie nice and wide), your asking for it. you will eventually get carried out.

Good post. Referring to your third point, I find that it is difficult to put a close stop anywhere original, these days! It is always in the vicinity of a load of other ones which, in turn, attract the attention of the spikers.

I use a "disaster" stop, so as not to lose more than I bargained for, and the other is a mental one.

 

[shadowninja]

I use a "disaster" stop, so as not to lose more than I bargained for, and the other is a mental one.

Ditto. You have a mental one because you realise when you are wrong. The mechanical one is in case of a sudden turn in the market or you start lacking discipline.

 

[new_trader]

Tight Stop Trading

Hi, thanks for all the chat and opinions and I would have to agree with trader_dante that my stop losses might be too tight. I have also been guilty of not taking profits at the right time.

You hit the nail on the head. You must do things at the right time. Entries and exits.

 

[FXSCALPER2]

If this guy widens his stops and makes money, I will like to know about it. If I were a betting man, I would bet that he will end up losing.

 

[Bobsurbull]

Keep your STOPS tight. It is a BIG mistake to think that your STOPS are not wide enough.

Most new daytraders and spreadbetters lose their money. This is an essential fact and indeed a valuable lesson. In my experience tight stops only work on major support/resistance lines that are technically proven. When market conditions do not favour range-trading (as per most of this year) and currencies move to extremes, technical lines become mostly meaningless.

Wide stops are not a bad thing at all, in fact they generally permit more time and allow for hedging strategies. The key to successful trading is managing overall margin exposure and not how wide one's stop loss is on an individual trade.

Currency trading is worse than an even money bet because not only does your horse have to run faster than the other horse ooverall, but your horse can never fall too far behind this other horse at any point or it may be pulled up (stop loss triggered) and your horse must reach a winning post that might be beyond it (could be 6,8,12 or 20 furlongs away and it might be that your horse will unseat its rider - trader nerves or tight stop, before it has a chance to even reach that winning line).

Spreadbetting also has other handicaps when it comes to currency trading, many of which are not conducive to good results for traders.

Bobsurbull