I ALWAYS use a stop. Couldn't imagine opening a trade without some form of stop because it basically defines how much $'s I'm willing to risk and what sort of profit target I'm shooting for e.g. reward = 3 x initial risk. As my trade progresses, I ...

I have a stop set to about 1/3 of my profit target. I trade wth the same $ risk per trade. It’s not something I obsess over though. Most of my energy is focused on finding the best setups i.e. the actual startegy. Acepting losses. Well, if you have ...

Unfortunately, many financial regulators are under-resourced, +/- don’t have the expertise to address this sort of issue properly. I suspect forex.com UK know this, that’s why they’re attempting to take 20k from your trading account. They also ...

If the price they offered the trader on the platform is not valid, it should have been rejected by their trade server after the trader placed the order. They are in fact in clear breach of NFA Compliance Rule 2-43 “Pursuant to the new rule, an FDM ...

Both can work. It depends on your trading style. Personally I don’t hedge, and only use stops. But I only trade one position at a time, and my hold times are seconds to minutes (1-2 hours at most), with smallish targets. I never hold trades through ...

Just let it hit the stop. Losses are never fun, but averaging down to avoid a loss, or holding onto a large open negative position hoping the price will come back might work on a few occasions, but eventually it'll end in disaster. Personally I ...

It’s always a difficult situation. The best approach IMO would be to review all the backtested charts when the strategy was profitable, and compare it to the current charts when the strategy is not profitable. If the basic setups are still working, ...

That's right. If you want to convert the money, get the broker to do it because the spread will be minimal. Although with a margin account it really doesn't matter what the base currency is, because the free margin available for trading will be ...

The base currency you choose doesn't have any impact on your trading or what pairs you trade, because forex accounts are margin accounts. But if possible, you should choose a base currency the same as your home currency, because by doing that you ...

Are those stats based on forward testing on a live account or backtesting?

Your basic approach is good (i.e. a good RRR, and using support/resistance levels), but in order for the trade to work with such a small stop, you have to be very selective about what pairs you trade, when you trade and what sort of ...

With MM, the 2 important numbers are: 1) % win rate and 2) Reward:Risk ratio (RRR) If you “let profits run”, you’ll have a high RRR, but a low win rate e.g. a swing trade strategy. Conversly, if you “take profits early”, you’ll have a high win rate, ...

Nice chart. How I see it, assuming there was no economic news announcement, I think the pullback to the trend-line was probably because traders were just uncertain that the breakout would have significant follow-through, and were closing part or all ...

Isn’t hedging really just a form of a stop loss anyway? The principle is protecting yourself if the market moves against your position.Whether that protection is in the form of a stop-loss order, a mental stop or a hedge, it doesn’t really matter. ...

A short term equity curve doesn’t tell the whole story IMO, because there could have been trades that were held in a large drawdown, that fortuitously return to break-even or a small profit. Eventually one of those trades won’t work out, and you’ll ...

What you're after is a Stop-Limit order. That's a style of stop order whereby you can limit the amount of slippage you're willing to accept, otherwise the order isn't filled. Some brokers also allow you to specify the trigger method for the stop ...

MT4 Brokers use CFD's to simulate futures indexes. CFD's are an in-house broker/market-maker derivative, whereas the futures indexes are real futures contracts traded on the exchange. If you're serious about trading indexes, trade futures because ...

One practical disadvantage of stock trading for small account traders, is that you need at least 25k USD in your account to avoid the Pattern Day Trader Rule. There's no such rule for forex accounts.

I started out trading retail spot forex, but over the past 3-4 years I've moved over to stocks, futures and options more and more. So I have some practical experience trading both markets. I think it's hard to generalise. I personally find stocks ...

With stocks, the risk is that an "extraordinary circumstance" can happen overnight, causing a huge gap down. A stop loss won't protect you against that - your stop loss will be filled at the market opening price, whatever that is. If an ...