One of the most risky strategy in forex is quick hit and run. It's refer to daily trader who do the trade shortly : enter the market then quit as quick as possible only in minutes, profit or loss, no hold any position. Of course, I'm not recommend this strategy and no one experts suggest this crazy strategy. But I see some beginners eager to try this completely trial and error strategy. If this bad choice is your choice, then prefer to use broker which have the littlest spread, if possible zero spread :-) but still trusted, because it will help you to rise your profit taking and reduce your loss possibility. Also I suggest you to put your Take/Profit and Stop/Loss order, soon after you enter the market to avoid unexecutable price when market move in quick.
The idea of my posting here is : what spread's impact for your trading strategy. This idea not only applied for crazy trader above, but also your trading strategy, specifically in use of Pending Order. Often we forget that the price between Bid and Ask is different about 3 point. Moving price is refer to Bid price : When we order Buy price it mean the price we get is 3 points higher. This condition also applied if we use Pending Order to enter market (not instant execution). For example, we want to order the lowest price to buy on 1st levet support, let's say 1.4000. Some hours coming when the price really move to price 1.4000 then rebound quickly. If we put Buy order exactly in price 1.4000, it mean we don't get the price because we order Buy price at 1.4000 which mean Bid price is 3 point lower = 1.3997, meanwhile the price only move to 1.400 before rebound (price 1.4000 in Bid, it mean Buy price only move down to 1.4003, not reach 1.4000).
Note that moving price shown in screen is Bid price (SELL) and Ask price (BUY) will be different about 3 points at average (some broker have zero pip spread with special conditions but other brokers even appliead 20 pips spread).
Wish always for your successful trading.
The idea of my posting here is : what spread's impact for your trading strategy. This idea not only applied for crazy trader above, but also your trading strategy, specifically in use of Pending Order. Often we forget that the price between Bid and Ask is different about 3 point. Moving price is refer to Bid price : When we order Buy price it mean the price we get is 3 points higher. This condition also applied if we use Pending Order to enter market (not instant execution). For example, we want to order the lowest price to buy on 1st levet support, let's say 1.4000. Some hours coming when the price really move to price 1.4000 then rebound quickly. If we put Buy order exactly in price 1.4000, it mean we don't get the price because we order Buy price at 1.4000 which mean Bid price is 3 point lower = 1.3997, meanwhile the price only move to 1.400 before rebound (price 1.4000 in Bid, it mean Buy price only move down to 1.4003, not reach 1.4000).
Note that moving price shown in screen is Bid price (SELL) and Ask price (BUY) will be different about 3 points at average (some broker have zero pip spread with special conditions but other brokers even appliead 20 pips spread).
Wish always for your successful trading.
1 comments:
wehhh mantap sop,
ohya jngan lupa berkunjung di blog kami ya http://harvesttradingfx.blogspot.com
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