Imagine having a $50k account, and every time you traded a microlot it would move the market noticeably. Well, this is how it is for the real market players except they, of course, have much bigger accounts. Losing a million is nothing to them. Imagine that only 10% of the FX population could possibly move against you whenever you decided to take a position. Imagine that you have to take more measure to conceal the ripples made when you actually do enter the market then you do ever having to worry about your account being blown.
The FX is still the wild west, and the only people making money are Jesse James and his gang. You are either one of the people getting stolen from or doing the steeling, or are on the same side as those steeling. You can equate setting a stop to broadcasting that you are sending money down the tracks to the gang to be stolen.
The only constants in FX for the movers are that there is a heap of fear, anger, greed, anxiety, ego, and worry in the market. Those are all exploits that those that win look for. Setting stops are perhaps the most easily exploitable example of these. Which is why price turns around just after a stop is hit. It's not just your stop that was hit, it's the other thousands of traders that set a stop there too. Averaging down makes a lot of sense if you are smart enough to determine market direction.
Let's not forget that if you have very little exposure or risk, then it would take an economy totaling failing before your account was ever blown up.
If you want to get ahead in this game, you've got to start thinking against the grain 90% in the other direction. Consider everything.
Chris
The FX is still the wild west, and the only people making money are Jesse James and his gang. You are either one of the people getting stolen from or doing the steeling, or are on the same side as those steeling. You can equate setting a stop to broadcasting that you are sending money down the tracks to the gang to be stolen.
The only constants in FX for the movers are that there is a heap of fear, anger, greed, anxiety, ego, and worry in the market. Those are all exploits that those that win look for. Setting stops are perhaps the most easily exploitable example of these. Which is why price turns around just after a stop is hit. It's not just your stop that was hit, it's the other thousands of traders that set a stop there too. Averaging down makes a lot of sense if you are smart enough to determine market direction.
Let's not forget that if you have very little exposure or risk, then it would take an economy totaling failing before your account was ever blown up.
If you want to get ahead in this game, you've got to start thinking against the grain 90% in the other direction. Consider everything.
Chris