DislikedUnder certain circumstances (low leverage) you can trade without stop loss and it's not gambling at all.
It's more gambling to use high leverage and being forced to set a stop loss.Ignored
Do you use stoploss? 648 replies
What stoploss do you use? 27 replies
forex tip - Don't use a fixed stoploss brokers can target 23 replies
Personal Take Profit and Stoploss (per human, not per trade) 0 replies
DislikedUnder certain circumstances (low leverage) you can trade without stop loss and it's not gambling at all.
It's more gambling to use high leverage and being forced to set a stop loss.Ignored
Dislikedthis position has been running for approx three days.
no stop loss used.
maximum leverage and exposure applied.
target equity: n/aIgnored
The danger with adding to losing positions is that you're progressively staking more money on the same price move, i.e. every pip price moves against you is now costing (say) $20, $30, $40 etc instead of just the original $10. If you choose option 2, and price never pulls back far enough, you'll eventually be forced to close all of the positions, and then that one price move will have wiped out many of your prior wins, where each pip was worth only $10. In other words, it's like betting BIG on one horse, and small on another, when both have equal chance of winning or losing, AND where the big bet can only ever result in a small win.
Here's something to think about: People trade forex because they believe that price will 'trend' far enough for them to make them money, i.e. once price starts moving in one direction, it will — on balance of probability — continue to do so, at least for a while. To whatever extent that philosophy is valid (and everything else being equal), it follows that:
Dislikedin case you missed it... THIS ISN'T A JOURNAL THREAD! stop treating it like it's your own personal journal and go make one.Ignored
DislikedUnder certain circumstances (low leverage) you can trade without stop loss and it's not gambling at all.
It's more gambling to use high leverage and being forced to set a stop loss.Ignored
Dislikeda stop loss is not needed when trading a properly designed arbitrage systemIgnored
DislikedStoploss is a risk management tool, and arbitrage (by its very definition) offers profit at no risk. So, what you're ultimately saying is that risk management is not needed when there's no risk involved. That's self evident.
The problem is that there are very few arbitrage opportunities available to the retail FX trader. The best that TA based systems can offer is some kind of an edge.
But at least the guy in your video was comparing apples to apples.
And it offered a simple explanation of how supply and demand affects prices.Ignored
Dislikedhanover,
the video is not mine, it is a generic youtube video that provides a basic tutorial regarding arbitrage and i thought that others might enjoy watching it.
it is my opinion that there are pretty much always going to be arbitrageable opportunities in any marketplace, the problem arises due to the difficulty that is involved in properly calculating said opportunities. the arbitrage opportunity that you are referring to is most likely that old textbook example of triangular arbitrage, which has been more than beaten like an old horse and...Ignored
DislikedOK then, can you list some examples, that are available to the retail FX trader...... keeping in mind that arbitrage means guaranteed profit with zero risk?Ignored
Disliked1) i am not suggesting that arbitrage is without risk.
2) guaranteed profit does not mean zero risk and it does not mean no work is required.
3) a stop loss is not the only risk management tool that i have in my trader's tool box..
Ignored
Disliked1) i am not suggesting that arbitrage is without risk.
2) guaranteed profit does not mean zero risk and it does not mean no work is required.Ignored
Dislikedyou are wrong...Hanover is right
ARBITRAGE is zero risk by definitionIgnored
DislikedI for one use the Arbitrage method while placing pending orders on the daily pivots. Especially on Mondays. Why mondays? Only because you know Mondays tend to be the lowest ranging day. So at most you will have a 2 to 3 pivot retrace or shift for that one day. So if you have enough equity and your leverage adjusted correctly. It can turn into a very profitable system. Yet, I think the BEST traders use stop-loss. Only because they enter their position under the premise that their entry price is the best one.Ignored
Dislikedamberlynn,
please do not confuse speculative/kamikaze/nostoploss trading with a serious round of arbitrage.
when you mentioned the need for *enough equity* that statement immediately disqualifies whatever trading method that you have as not being of the arbitrage family of strategies.
arbitrage is a very serious type of transaction and it involves absolutely no speculation whatsoever.
arbitrage, in my opinion, should have a dictionary definition that is the inverse of the definition of speculate or some other form of the word speculative....Ignored