Leadcapital Markets - TRADE.com

[Direbringer]

If you're trading with 3-5 trades, that can work so. But if you're taking trading seriously, you simply can't control each trade 24/7, so you would miss some of them and would lose money on them. Stop loss helps to avoid such issues. Otherwise, you can't control taking profit as well, so sometimes you can miss your profitable trades. So, it's better to set up them ALWAYS.

You speak of active trading here. Yet, even CFDs can be traded long lony and long term.
The essense of the ecnomics is that the value of top-performes (which is exactly what S&P index reflects) ALWAYS goes up. Yes, sometimes retracements happen. Significant retracements happen. BUt the fact is the historically AL these retracements have been covered by new uptrends. So the approach to risk management depends on the scope of your planning. Of course if you don't plan furthen than next weekend, stop losses are essential to control the risks. However, that's NORMAL to trade with no stop losses if you INVEST and don't plan to take the money out of the market any time soon.

 

[Lailsa]

That makes sense. I believe "any time soon" would mean no less than a year?
One more point to avoid stops and take profits I believe is the possible reward you can get if you don't settle for small profits and 'let the profits run' as they say it. Recently I've been thinking a lot about those accidental Gamestop investors. There were some in a long position for GME accidentally with a 'reasonable' takeprofit being hit on Tuesday. They must be very disappointed!

 

[Direbringer]

Absolutely! Traders that don't apply stop and TP take a full advantage of such unexpected price splashes, but they risk to get stuck in a long drawdown at the same time if smth goes wrong.
I'm not tht sure though that Gamestop investors will make any significant money with their 'investments'. Every stock sell will result in a significant drop of the price. Those who managed to exit by now - those are the real beneficiries of this scheme. I seriously doubt the reddit hamsters will make much profits with their speculation.
If you've paid attention to trade.com investment offers, some systems allow higher risks. Others offer moderate risk. The higher is the risk, the better is the expected profit.

 

[Gravelwood]

Yeah, you've raised some good points. Risk and profit are always intercorrelated. That's true that I spoke of short term trading when claimed bracket orders are a must. Every rule has got some exceptions.

 

[Direbringer]

Day traders often fall in an illusion that the weay they trade is what all people do. The fact is that large players and 'normal people' often use stocks just like we use saving accounts. Invest and forget. Leave it for your grandchildren - that's the approach that many US citizens preach since the beginning of XX сentury.

 

[Lailsa]

I had a look at the investment offers of trade.com you mentioned. Who in a workd will choose a strategy with a 3% risk and 10% potential profit if you can go for 40% profit with 10% risk?

 

[Direbringer]

You are misplacing the actual historical drawdown and a potential risk. The first conservative strategy has a 1:3 risk reward, the second has got a 1:4 risk reward. Not a big difference, BTW
The interesting point here is that when you settle for potential 10% drawdown you must be prepared that:
1. the longer you run the strategy, the stronger is the chance you will experience this drawdown on your account. Maybe not even onece
2. historical drawdown is just an estimate. Multiply it by 2 or 2.5 to get the size of a drawdown you must be prepared to.

 

[Lailsa]

Hmm, yeah, that places it all in a different light. Thanks for explaining!

 

[Lailsa]

I don’t have that much money to do without stop-loss orders. I’m going to trade actively throughout the day. I guess that with some valuable inside information and a huge capital, I would not care about stops, but my situation is different. I don’t know a lot about trading and Ican't afford big losses from the very beginning.
Since I lack sufficient capital, portfolio investment isn’t for me now. Perhaps, I will get back to it later, but I don’t think it will happen soon.
Now I’m going to focus on CFD trading with the broker. I heard that as a CFD broker, it’s really good. That’s the most affordable thing for me and I’m going to master it step by step.

 

[Direbringer]

Of course, if you intend to practice CFD day trading, you can’t do without stop-loss orders. Day trading gives a good practice. It teaches traders to quickly respond to news, consider several scenarios and timely stick with a winning one.

 

[Gravelwood]

It’s a good thing that you have decided to master trading step by step. Dispersing your attention is the first challenge in trading. It’s because novice traders have to learn a lot of new things. If you are a kind of person who has never dealt with numbers and statistics, you will most likely have a hard time processing tons of economic statistics. However, if you are persistent enough and ready to reach your goal, you will learn how to handle this challenge.
I have already told that trading isn’t a kind of thing that can be mastered by simply taking several courses. As in any profession, you will have to learn the whole life.

 

[kasual]

by registered at CySEC (Cyprus), FCA (UK) and FSCA (South Africa), your interests are truly protected, them said. that looking good since such effort is real required to attract customer to join and invest with them. however, i cannot see that they are let customer to trade with meta trader platform, since what available to use is web terminal only.

 

[Direbringer]

by registered at CySEC (Cyprus), FCA (UK) and FSCA (South Africa), your interests are truly protected, them said. that looking good since such effort is real required to attract customer to join and invest with them. however, i cannot see that they are let customer to trade with meta trader platform, since what available to use is web terminal only.

there is an Mt4 download at trade.com for the fans of MT to trade CFDs. Personally I don't find this platform to be the most attractive ever. Do you?

It’s a good thing that you have decided to master trading step by step. Dispersing your attention is the first challenge in trading. It’s because novice traders have to learn a lot of new things. If you are a kind of person who has never dealt with numbers and statistics, you will most likely have a hard time processing tons of economic statistics. However, if you are persistent enough and ready to reach your goal, you will learn how to handle this challenge.
I have already told that trading isn’t a kind of thing that can be mastered by simply taking several courses. As in any profession, you will have to learn the whole life.

Yeah, constant learning is inevitable because economies constantly change and new revolutionary assets show up such as cryptos that behave differently. Moreover, we have just seen that one disease managed to change the world. So, something you learned before might become worthless soon. So, unstoppable learning is the only way out.

 

[Lailsa]

I’m not going to hurry, especially considering that I will have to learn all my life. Now I intend to focus on several CFDs. I think these will be oil, gold, and perhaps EUR/USD. Then, over time, I will expand the list of financial instruments.

 

[Dorirdredd]

Is it true that trade.com limits scalping opportunities?

 

[Lailsa]

Even if it does, I didn't notice anything like that. I use 5 min timeframe for trading, so very small portion of my trades lasts less than 3-5 minutes. I guess everyone has his own understanding of what scalping means.

 

[Gravelwood]

I understand what you mean by scalping on 5M timeframes. I use the same term for such a trading style. However, this is also true that lots of traders consider near-HFT frequencies to be 'scalping' and in this case I think this is necessary to specify with a broker individually whether they have any specific limitation. The example above with insta limiting trades that last under 5 minutes - that's a good example of clear policies that you can face dealing with one or another brokerage. Some don't have these policies but warn traders from using HTF algos or doing arbitrage trading. I think trade.com belongs to the second type of the broker.

 

[Lailsa]

I guess yes. I don't think any manual trader will have issues with this firm in regard of the scalping (in case their trades don't last a second or two). The only difficulty that I've faced, you can't place the stops and takes too near and you've got to exit manually in case the early close of position is required.

 

[Dorirdredd]

Good to know! Thank you for sharing your experience!
I don't know though why would you need to ope n a trade at all if you plan to do the early exit, but oh well, we are all different..

 

[Lailsa]

Ahahah, yeah, we are different indeed.
I'll try to explain though )
Look, when I plan the trade I rely on the levels of support and resistance. Sometimes these are very precise levels and in case the price doesn't bump off the level, the chances get very high that the level will be neglected/broken. This is why early close of position is needed. However, I also found for myself that after you get such a limit entry, this is actually nice to have a wider stop loss level in the very beginning of the trade as volatile market sometimes can make the price little... inattentive to these precise levels LOL I've often seen situation when the price went throguh the level like a hot knife through the butter, but then bumped off. A kind of a false break through, I guess... This is actually why I'm totally ok with Trade.com policies on close stop loss orders.