Investigate twice when your set stop loss incurs you a loss!

Patience, keen concentration and immense interest are very much important if you are trading in

Forex. Obviously, being a novice to FX (Forex) trading industry you can’t expect to become a

millionaire or billionaire in a day’s time. And, if you have landed up to FX trading with this aim,

then you have chosen up a wrong place. FX trading is a magic market, where you can earn even

$1000 in a trade and lose the same amount in a trade. Unless and until, you know how the market

moves, when to place a trade, which currency pair has to be chosen at which time, which

indicator or signal has to be trusted etc, you will really have no idea of how to achieve in this

perplexed scenario of trading.

 

In this blog, we shall analyze how our hit stop losses can be wrong at times. So, you are a forex

trader trading for a period of about, let’s say 6 months to 1 year. Being a trader who has an

experience of more than 6 months, you will have an idea of how this FX market moves and when

to place a trade etc. As usual, you have placed your stop loss and continued with your routine

tasks. The very next day, you check your positions and you see that your set stop loss has been

hit and your position has been closed with a loss.

 

Sometimes, you might think this is one among the worst days of trading and might leave it. But

to achieve in this competitive market you shouldn’t leave a chance for anything. You need to

check and investigate on the losses which have been incurred on you. Only when you investigate

you will know if it was a loss or was it the game played by your broker by widening the spreads.

Let’s assume that you have investigated and you have found that the market hasn’t reached the

stop loss price which you have mentioned. You now know that it wasn’t your fault and then you

contact your broker. After that, all the drama and apologies comes from your broker and they pay

you back for the loss and open the position again.

 

This is the perfect moment to think whether to continue with the same broker or move on to a

better broker. Think think think and follow what your heart says. A few brokers, not all, see their

client’s deposits as their profit and try to make their own money by manifesting it as a loss to

their clients. Those who investigate it would find out the trick made and those who don’t just

become their victims.

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