Australian (ASX) Stock Market Forum

Use guaranteed stops!!

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7 September 2011
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I have started trading index's on the Market Makers for such things as Gold and Silver.

I had stop losses in place, however all of a sudden a massive $25 crash burst through my stop and put me so far in the red that my head spun.

I guess this post is mostly me venting but I urge people to use the guaranteed stops even though it costs more margin as anything can happen and this whole fiasco has left me doubting the value of my skills as a day trader.

Heed this warning - it will save you in the long run in my opinion.
 
Dude!

25 smackereoos is not a big move. Methinks you're trading too big for your account.:2twocents
 
Think he meant $25 move in gold
It was a $16 move in the first min, $25~odd dollars to the low.

To be fair its a major support, so a LOT of ppl would have stops there. So yes if you're catching falling knives a GSL would be good. Otherwise (99% of the time) they are simply a waste of money.
 
Think he meant $25 move in gold
It was a $16 move in the first min, $25~odd dollars to the low.

Yes that's what I think he meant too.

Not uncommon and if you get corn-holed by a $25 move in gold you're trading to big IMO.
 
Yes that's what I think he meant too.

Not uncommon and if you get corn-holed by a $25 move in gold you're trading to big IMO.

Yes, it was a 25 dollar move, or 25 point move lower, in a single candle on a 15 minute chart. It hurt bigtime.

When trading on index's, all the T/A edges that usually bring me in a small profit on stocks, completely bottomed out when trying to apply it to an index or spot gold/forex.

Using a GSL is the best in my opinion if you want to trade over a longer term than just a few minutes, such as going in for the day.

Argh, CFD's can really hurt and it is not wise to trade such things with small accounts. Back to stocks I go! :p
 
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