Hi
Yesterday evening I opened a second demo account/platform with the broker Alpari. I will talk about it. Between then and today early morning I also placed 4 orders. One of them being a silly click and 3 more educated decisions, based on my trend findings for some currency pairs. Let start with my bright mistake idea.
What a beginner should probably not do with a Stop-Loss
The idea of a Stop-Loss, you will have understood, is to Stop a Loss. Are you following me? Did you know I managed to generate a Loss using it? Mr Glick spotted just for you a dangerous and useless game.
What I did is opening 3 orders for 3 different pairs. On my fingers, I counted a very few pips difference and added Stop-Losses on each of them. Against Mr Reason advice, I then thought “ Be smart, while surfing the right wave, the wind in the hair, replace your Stop-Loss always very close, very very close …”. I walked away a few minutes, came back and wondered where all my orders were gone, apart from one survivor. The 2 other orders were simply gone in the closed orders list because they hit the Stop-Loss.
You could tell me I did not lose anything since it sounds like the trend was not flowing in my favor. Yes, this is true for one pair and the other only true about 2-3 pips the wrong way. If my Stop-Loss was placed a bit further away from the price, right now I would be making money (on demo). Instead I collected Losses, highlighted in red for me, in case I did not see well.
Shall I really explain what mistake I made?
Action: I will place Stop-Losses a bit further away. According to my money management plan, 10 pips is a reasonable risk. Will see that. This mistake cost me about $10 plus the profit I will never make.
I leave to the experts tight Stop-Losses.
If I did not re-open new orders just after, it was because I got a rule: if I face a sudden unexpected Loss, I want to walk away and check what happened. And also decide with no pressure.
The “Silly Click” concept.
At the market (the one in the village selling salads and overcheap horrible sunglasses…), when you approach the fish stand, you can see all the ice and dead fishes aligned on it. You may have noticed many of them with large inexpressive eyes starring at nowhere. There is, I think, a strong correlation between the way they watch the world and their brain activity.
Anytime someone open an order in the Forex with the same attitude as those fishes, that someone is granted the honor of having realized a “Silly Click”.
I open the bal and announce the world I am the proud father of an amazing Silly Click. Yesterday night, based on nothing, I candidly opened an order and watched (like the fishes) my luck… going away. It cost me $12 (demo). With a live account I better save myself such decisions.
Second Broker demo account and a discovery
I made yesterday night a breathe-taking discovery when I installed the broker’s Alpari platform. The platform is Called Metatrader 4 (called MT4). I already got MT4 from the broker Hantec Markets. Guess what: Both are exactly the same. Even the colors! Amazing!
What a surprise. I imagined this MT4 platform being re-vamped by brokers. The difference is not in the layout, colors or options. No. The difference is in the cost of opening a new order and the current price moves.
I was like a mad man abusing the “alt-tab” key combo on my keyboard to quickly switch between both screens in order to check differences at time t. Could sometimes be a few pips different? How is it possible?
My current hypotheses to explain the discrepancy are as follow:
1/ Maybe one of the 2 brokers got updates quicker than the other
2/ Maybe they refresh the data on screen at different intervals
3/ Maybe there is something I don’t know yet
I will come back on this when I find out more.
Before I go
I got a secret.
I am in the process of opening the live account. Might be as soon as a week, or less. I plan to use micro-Lots at the beginning.
Be warned, Silly Clicks can strike anyone anywhere.
Mr Glick
Forex Surfer - Apprentice
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