Blown stops, how often does it happen and when

I've seen where people have blown stop losses, how often does this happen and when are the time it would happen? and when it does happen does it stop and the next convenient time? Or does it just keep going?

Btw completely separate thought I'm a total newbie. But I've learned one thing in the last 2 days. Reading, reading and reading are going to get you now where with actually opening up a bare minimum demo account. I've been reading forums and notes for the last 3 months and haven't done anything until yesterday. Still doing a lot of playing around but I'm learned more in 3 hours playing on demo account than anything else. You need to see how the chart, numbers move and put orders in and what not.

Do you mean price going beyond the set stop-loss levels? That happens quire rarely with my positions and when it does, the difference is mostly negligible - just 1-2 pips. That usually happens during high volatility periods, when the price moves not in 1 pip per tick, but rather 5-10 pips.

Yup that's what I mean. It hasn't happened to me yet but just wondering

The greater time frame the greater stop losses. Major support/resistances require greater stop losses. Volatility should be averaged too. Stop losses in relation to volatilities.

SL can be blown when the market is moving rapidly. Its often only 1-2 pips, but I have seen it 5+ pips.

I was taken out of my EURAUD Trade today.
My Stop loss was at 1.35489.
The price on my MT4 chart was showing 1.35354 and I was suddenly taken out!

When I checked with my broker, they said the price on chart was the bid price but the stop loss was based on ask price. This is a 13.5pip spread!
Is this normal?

My broker said it it was due to after US close and a very quite time in the market.

jamon, from your post it's evident that you had a short EUR/AUD trade. Short trades are closed at Ask price. The MT4 charts display Bid price. 13.5 pip spread between Ask and Bid price isn't rare. For example, the normal spread for this pair is 10 pips with my broker.

Hi Enivid, Yes I was shorting the EurAud...
but the normal spread I am getting for this pair is 2.5pips so 13.5pips is a shock for me.
Thanks for sharing. cheers

MT4 has a tick chart. You can set this to show Bid and Ask.



You will then see that the spread can increase quite substantially during 'after hours' trading and news.


If you use trailing stops, you may sometimes think that your stop is quite safe, well away from the current price, only to have it blow out because some news event caused a huge spike in the spread. Especially annoying when you look at the chart and see that price never went anywhere your SL. This often leads to paranoia and the belief that 'they' are after you.

HaHa that was what happened. I was looking at the Chart. It was going to hit some resistance. My SL was above that but suddenly the trade was taken out...

Thanks for sharing at least it is a lesson learned.

hey,

the job of a " marketmaker / bank trader " is to trap the retail trader.

they jam you up at the low and high of the day.

they run spikes into the game to show false breakout direction in order to get you to push the buy or sell button and blow your wad.

if you think your trade is being matched up with some other trader in San fran. or Cleveland ......

think again.

to move the price you need to trade 5 to 10,000 cars at a time.

these guys control the game, not you with a 1, 10 or 100 lot order.

" break out traders " will get blown away as the market retraces and the zone is shifted.

this is retail mentality.

you want to win..........?

then stop worrying about comparing broker's data and ECN and all that other crap.

start thinking like a bank trader.

cheers,

Shop

http://www.forexfactory.com/images/m...ading_dark.gif

An option is to trade longer term with smaller orders and more distant stop orders