Friday, May 21, 2010

What Your broker do against you

This post is connecting to my explanation about timing and babysitting your position.
If you read the term and condition before you sign up to your broker there is term about they will take all your offer or position. It means if you buy they sell and if you sell they will buy. Some beginners trader have a slight mistake about trading in a broker platform . They think that they fight against the market. For Big traders and big boys of course that is the truth. But for regular retail trader like me and a lot of traders it is not. because of the condition you must understand that you will get a lot of losses.

Here I want to share in my experience how broker make a serious strategy against you inside or with the plat form..

1. The make a freeze price. ( freezing the price). Sometimes broker loose in the real market or there is a good price for every broker to get in . Sometimes they make a cheat act : they will disconnect your platform or make a delay time. The aims is to make a bad price position which is offered to you. And make trader loose the good time to enter.

2. Make a fast fading action. Sometimes you will get a huge movement or spike to one pair. Your broker strategy is making a fast fading in that price so trader can not enter or cannot take the best winning. And if you are not in the trade, you cannot enter . The result is always : re quote the price. blink blink ... re quote the price and if you close you will get a small winning or if you enter you will find a big minus in your position. This action aims is to make your robot death or making not effective and get wrong signal too.

So be deathly careful from this 2 (always) your broker do in your trade.

So if we know that things can I and you make a winning trade? OF COURSE. in the next post I will explain to you.

see you happy and profit trade....

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