SDMarik

Some advice for newer traders!

FX:GBPJPY   British Pound / Japanese Yen
88 1 1
One of the students I coach got himself into some pretty decent trouble last night while trading GBPJPY             , when we connected this morning for his lesson he told me that he pretty much blew up his whole account, so we decided to go over the trades he made.

He was scalping last night and would up really churning up his account, and lost a pretty nice chunk of cash flip flopping his trades trying to chase this pair all over the board, Chasing and flipping trades is especially dangerous in forex trading because of the spread, when I broke down his trades I estimated he spent about 30-40 pips in just spreads!, not including his losses on top of that.

I have marked on the chart the time frames where the majority of the flip flopping occurred.

Lesson of the day: DON'T EVER flip flop trades, and for the love of god don't chase things around after the trade didn't work, it makes it impossible for you to clearly identify your entry and exit points, and spreads (or commissions if its an equity account) will destroy you. You may get lucky once in a while (which is the worst thing that can happen because you think it can work) but you WILL blow through your account chasing the other side of losing trades.
Very good advice.
Reply
English
English (UK)
English (IN)
Deutsch
Français
Español
Italiano
Polski
Türkçe
Русский
Português
Bahasa Indonesia
Bahasa Melayu
ภาษาไทย
Tiếng Việt
日本語
한국어
简体
台灣
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out