[ahimsa]

Originally Posted by Ingot54 »

Ahimsa - this is what the market does to those who do not use stop loss orders.

Like the mouse, we may see nothing but "cheese". Sometimes we may get away with just scalping the pips, but eventually, the market might punish those who trade without stops.

There may be a few mice on this site who will have a strong case against using stops too - I have no problem with that - they are responsible for their own cheese.

But where money is concerned, the market only has to take ours once - observe what happened with the broom in the video clip - and we lose.

Here is a chart from yesterday ... nearly 12 hrs ago now. You can see that the GBPUSD had been in a nice uptrend, and it is likely many traders were long. A retrace occurred followed by another rally, to continue the uptrend, at which stage traders might have entered to take advantage of the pullback in the uptrend.

The pair then gapped down 40 pips. The GBPCHF also gapped down 30 pips ... to 55 pips ... on the 1Min chart at that time.

This happened 15 minutes AFTER the news announcement - an adverse GBP news release - so no one would have been expecting anything unusual. This was the second high-impact news for the GBP in that 90-min period, and the first ... Halifax HPI m/m ... was not good either, though not fully unexpected.

In the next 30 minutes the market fell a further 34 pips.

There would have been opportunity to close longs in that time, had traders been watching closely, but the 1M chart says they were burnt!.

The entire move top-to-bottom was 97 pips, and it is possible traders might have been caught with about 75 pips loss of that move down, depending on if they entered long earlier, and where they were able to grab an exit. Certainly by the time traders saw the gap and closed the position, the loss might have been 60 pips. See the 1M chart - it was ruthless.

Rapid price movements are not unusual around news release times - but this one is unusual in that it occurred well after the release, when the market was ostensibly settling down again. That would have been a nasty situation for many traders, I suspect.

Here ends my explanation ... long version.

Short version: Yes, I always use Stop Loss orders.

yes ingot,me too think that is better to use stop loss,but it's true also that many gain we can have without,but here is the true fear,for me how we can haven't fear to lose money ,neither the biggest magnate in the world i think that don't have this fear.good example,for made the stoploss a important rule to apply,.and your chart with clearness we can see the big gap...wow 40 point without stop is good to take but if it go to the other side?better use the stop and being sure to dont lose money.but the chart is 15 m no 1 m.i don't use more 1 m chart especially with forex,too much rapid movement,(i need my hearth i don't want use cardiotonic)i work on 5 m and look ever before opening 15 ,1 h 1 d and also 1 w (when the week start).and i can said that in this way this month i made a research with usd/chf in demo and for look the market also at 1d i increase of 300%in a week.but the week after i made a mistake and i destroyed my account losing the 100%.

[Ingot54]

There are always two ways to look at things:

[MightyMouse]

Originally Posted by Tams »

don't be a hero

That is clearly Wall St and the CEO's of the major investment banks. Look closely in the crack. You'll see the shadow cast from the Goldman Sacks mouse. Safe and sound.