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.