Disliked{quote} stop losses can be jumped over though and people are left with a negative balanceIgnored
- #18,202
- Apr 4, 2018 9:01am Apr 4, 2018 9:01am
- Joined Mar 2015 | Status: Trader | 1,445 Posts
Does anyone else feel like the "talk cycle" is soon going to be this?: US economy slowing due to tariffs with China. US numbers start getting bad ... hey wait, the EU is still willing to trade with China No rate hikes in US, dollar down, EUR up. haha, but suppose the fundies don't matter. Just my tinfoil hat theory. I'd bet sooner rather than later FED HEADS start to use tariffs as an excuse to delay the hike(s). Right?Another side question: how long until our debt is unsustainable and will need to be defaulted on (some)? I heard by 2025...
ISM and factory orders were meh... if NFP is meh or bad also, USD down?... wait for it ^ ? Haha.
ALSO still to come: If the FED knows that yield curve inversions cause recessions, I'd be willing to bet that someone soon proposes that they always keep it from inverting within their operations.. because you know, they just love trying to fully manage the US economy.
- #18,205
- Apr 4, 2018 9:39am Apr 4, 2018 9:39am
- Joined Oct 2008 | Status: Price made me do it. (0.0) | 1,312 Posts
- #18,206
- Apr 4, 2018 9:41am Apr 4, 2018 9:41am
- Joined Dec 2015 | Status: Trader | 14,257 Posts
{quote} Sadly Stop-Losses are exactly the same as manual exits. Stop-Loss = Automatically executed Market Order The common misconception is that a SL MUST be filled at the price it is placed at. This is just not so. Since it is a Market Order there must be a Limit Order waiting to be filled by the Market Order, and if there are no Limit Orders then the Market Order will keep searching until it can be filled. Then at the Swissy unpeg there were no Limit Orders to stop the fall of the exchange rate and the SLs/Market Orders were impossible to fill...
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- #18,207
- Apr 4, 2018 9:41am Apr 4, 2018 9:41am
- Joined Apr 2017 | Status: trying to make money | 3,341 Posts
Don't Worry Be Happy
- #18,209
- Apr 4, 2018 9:50am Apr 4, 2018 9:50am
- Joined Oct 2008 | Status: Price made me do it. (0.0) | 1,312 Posts
{quote} You mean, bunches of Limit Orders create like a field wich attracts like a magnet?
Market Order = Car
Limit Order = Wall
The Car will keep driving until it hits a Wall.
If the Wall is too thin the Car will keep driving until it hits a Wall thick enough to stop it.
The exchange rate only changes because of Market Orders/Cars. Because they are the only element in the market that can move.
The exchange rate is held still by Limit Orders/Walls. Because they cannot move on their own.
The definition of Market Order: An order which is filled at the Market price.
If there are not enough Limit Orders at a certain price to fill the Market Order the price will move to the next Limit Order in line and fill there.
The question of Stop-Loss 'not working'? What if there are no Walls for the Car to hit????
- #18,210
- Apr 4, 2018 9:51am Apr 4, 2018 9:51am
- Joined Apr 2017 | Status: trying to make money | 3,341 Posts
Don't Worry Be Happy
- #18,211
- Apr 4, 2018 9:52am Apr 4, 2018 9:52am
- Joined Oct 2008 | Status: Price made me do it. (0.0) | 1,312 Posts
- #18,212
- Apr 4, 2018 9:55am Apr 4, 2018 9:55am
- Joined Apr 2017 | Status: trying to make money | 3,341 Posts
Don't Worry Be Happy
- #18,213
- Apr 4, 2018 9:57am Apr 4, 2018 9:57am
- Joined Dec 2015 | Status: Trader | 14,257 Posts
{quote} Or you could think of it like this. Market Order = Car Limit Order = Wall The Car will keep driving until it hits a Wall. If the Wall is too thin the Car will keep driving until it hits a Wall thick enough to stop it. The exchange rate only changes because of Market Orders/Cars. Because they are the only element in the market that can move. The exchange rate is held still by Limit Orders/Walls. Because they cannot move on their own. The definition of Market Order: An order which is filled at the Market price. If there are not enough Limit...
Nobody knows what a S/R level is made of!
Pendings like Limit Buys/Sells or Stop Buys/Sells - or TPs, SLs
...meaning a S/R can be broken or reject! ...banal assertion!
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- #18,216
- Apr 4, 2018 10:20am Apr 4, 2018 10:20am
- Joined Oct 2008 | Status: Price made me do it. (0.0) | 1,312 Posts
{quote} So what, is a common thing, that's how the market works
Only the mechanics behind price movement.
You are right S/R are a combination of both Limit and Market Orders.
When the Market Orders overwhelm the Limit Orders Price will continue.
When Limit Orders outnumber Market Orders Price will stop.
Sadly we do not have access to the same Data as say a Broker and cannot see where lots of Limits are stacked up. We only have clues in the charts themselves.
Stops are much easier to identify since most of the time they are placed in obvious places.
- #18,217
- Apr 4, 2018 10:24am Apr 4, 2018 10:24am
- Joined Oct 2008 | Status: Price made me do it. (0.0) | 1,312 Posts
{quote} So what, is a common thing, that's how the market works
It should be named: Automatically Executed Market Order
But it is easier to sell a new trader on the idea their money is safe if they use a 'Stop-Loss' since everyone hates to lose money. But it is not 100% insurance as they imply. More like 95%.
- #18,218
- Apr 4, 2018 11:04am Apr 4, 2018 11:04am
- Joined Mar 2015 | Status: Trader | 1,445 Posts
Let me guess... 1.2300 right? 