Starting to trade CFDs

Timmy · 30 April 2008

Re: Starting to trade CFD's

TH, you have been on this track of "the MM CFD providers do not manipulate price to take out stops" for a while now. I must admit a wariness of MM CFD providers because it is my belief they do target stops ... but you have been calling for quite some time for anyone to provide an example of where this has happened - a real example, backed up with charts etc. From my observations of your calling for examples (or at least an example) I have not seen one provided ... which I must say has shaken my belief. I would appreciate anyone showing an example of this happening so I can snuggle back into my belief ... 'cause it is getting shaken very badly ...

Trembling Hand said:
This assumption has profound effects on your trading and I warn anyone not to listen to this stuff. When you get stopped out and you put it down to manipulation by your broker what is that saying about your approach, mindset, entries, stops AND most importantly responsibility for your OWN actions and ability to learn.

This comment, should be required reading and understanding before anyone trades anything. This comment is really valuable. I would add that if anyone does have evidence of a MM CFD provider targetting his or her stops then the solution is very simple, change your account to a DMA CFD provider - that way there is no dispute about MM manipulation and the party responsible for your stop being hit will be revealed with clarity.

Thanks TH.

Trembling Hand · 30 April 2008

Re: Starting to trade CFD's

Timmy I have been on and on about this because it is very important for a traders development. I'm not trying to make an **** of myself(although I probably have) or anyone else but it is really very very very very important to shift the focus from,

the game is rigged & and my brokers stealing from me,

To

that trade didn't work what really went wrong?

If you answer that question from the point that the prices you are getting are manipulated then you have no hope. Why try? But if you realize that the prices are real market prices you can then just maybe set about learning to trade with good entries & stops.

Don't get me wrong MM are crooks in the silly leverage they give you and the spreads & turning off your account when you make money etc etc. BUT in all the times I have been fluffing around with CFD & Futures & Forex I have never seen a price "drift" from the underlying market. If I did I would load up big time. BIG TIME.

Timmy · 30 April 2008

Re: Starting to trade CFD's

Hat's off to you TH ... really great stuff.

Uncle Festivus · 30 April 2008

Re: Starting to trade CFD's

Well I have had a win with IG closing me out with a stop. I couldn't see that the stop had been hit but was closed out. Gave them a ring and after a few minutes of behind the scenes silence they admitted they got it wrong and reversed the stop. Luckily it was spot gold at 863 so a lesson to all to question some of these things and you never know, you may be surprised.

He still didn't explain why it happened though, mumbled something about fractions or some such.

Spineli · 30 April 2008