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  • Actual for You - Forex Trading - Stop Hunting - What To Do About It

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    eally have to do anything. The market can just hiccup and you'll be taken out of the trade.

    (Other times, bro

    Know Thyself and Thy Business
    I recently interviewed a prospective client. I asked her to briefly describe what she did. She said it was complicated, she did so many things. I asked who her clients were. She said she couldn't define t
    Let's just come right out and say it. Do brokers hunt stops? Yes!

    Okay, we got that cleared up. Let's clear another thing up, too. Every time someone whines about stop hunting, is it a foregone conclusion that it has happened?

    No!

    In reality most forex traders are under-capitalized. This forces them to trade with too tight of stops to protect their already too small capital. Unfortunately, with a stop that tight, the broker doesn't even really have to do anything. The market can just hiccup and you'll be taken out of the trade.

    (Other times, brok

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    nother thing up, too. Every time someone whines about stop hunting, is it a foregone conclusion that it has happened?

    No!

    In reality most forex traders are under-capitalized. This forces them to trade with too tight of stops to protect their already too small capital. Unfortunately, with a stop that tight, the broker doesn't even really have to do anything. The market can just hiccup and you'll be taken out of the trade.

    (Other times, bro

    Business Management and an Enjoyable Work Environment
    Do your employees and management staff like their work environment? Can you sense a team effort there? Are people actually happy to be involved in the organization? Are people showing up on time?Does
    d?

    No!

    In reality most forex traders are under-capitalized. This forces them to trade with too tight of stops to protect their already too small capital. Unfortunately, with a stop that tight, the broker doesn't even really have to do anything. The market can just hiccup and you'll be taken out of the trade.

    (Other times, bro

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    stops to protect their already too small capital. Unfortunately, with a stop that tight, the broker doesn't even really have to do anything. The market can just hiccup and you'll be taken out of the trade.

    (Other times, bro

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    Back when I was a grade school kid, a couple of times each semester the fire alarms, announcing a firedrill, would shriek. We would all jump up from our desks and march, single-file to our appointed spot ou
    eally have to do anything. The market can just hiccup and you'll be taken out of the trade.

    (Other times, brokers will "cause" the hiccup, causing you to be taken out of the trade.)

    It seems that traders have forgotten the most basic principle about stops. They should be placed where you think the market won't go!

    Don't put them in the path of the market. Put them where they are hard to get at. Then if the market does find them, you know with certainty that the trade wouldn't work (you gave it plenty of opportunity).

    The problem happens right her

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    BB link (for phorums):
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