If you are not new to forex trading, you have probably heard about the stop loss hunting myth and it can generally influence the way traders perceive the market. That is why in this article we will digest this issue and make clear once and for all if stop loss hunting is true or not and what any forex trader can do in order to avoid being involved in such situations.

Retail trading and conflict of interest

One thing that most of the retail traders do not know is that any broker that lacks regulation and internal ethic is basically functioning as a betting company. This type of broker is literally opening positions on the other side of the market without telling anything to traders.

Also, the broker can see where the majority of people is placing stop losses and take profits, and by widening the spread (the difference between the bid and ask price) is able to trigger stops and thus make clients lose money.

What should a trader do?

You as a trader cannot stop this kind of activity, but you can take some measure in order to protect yourself. You must start to think outside of the box and take precautions, so you won’t work with a broker that does what we have described above.

The first thing to do is to choose a broker regulated by a strong and popular financial watchdog. The Financial Conduct Authority in the UK and the Securities and Exchange Commission in the United States are just two examples with that respect.

Another important aspect is the liquidity provider your broker works with. 5 digits quotes and a clear chart can prove that.

It is also a good thing to check for other broker’s quotes to see if there are significant discrepancies between them. If the liquidity provider is different, the quotes might vary a bit, but significant differences should ring alarm bells.

Your trading strategy should also be set correctly. Most of the beginners lack a deep understanding of the markets and blame the broker for their losses.

Trading forex requires a lot of work and many things to take into account. The small details can add up and in the long run, can generate huge returns. Make sure to take into account all the information we have mentioned here in order to avoid working with an online broker that only looks after its interests.

If you are reading this article you are most likely one of those that have a strong desire to achieve success in forex trading. However, when it comes to actually do what is required for that, you find it hard to implement all the things. Also, some of the information that had been given to you by all the “online expert traders” seems to be useless and that is why we want to give you a few trading tips that will certainly help you in your day to day activity.

Tip #1 Focus on the process not on the reward

We know that each one of you is trading because each of you wants to have more money. That is a fact which can’t be denied. However, focusing on the money and not paying 100% of your attention to the process that will eventually lead you to have more money, can end up with you actually losing money and become emotional when it comes to forex trading.

How you treat this activity is crucial if you want to be a professional forex trader. We’ve emphasized in a previous article, that treating forex like a business is the best way a person could approach this process.

Also, as we have learned from Jesse Livermore, understanding the fundamentals of the market and tracking its performance represent aspects of the trading process that you should focus on.

Tip #2 Constantly improve your game

Maybe you are one of those that already manage to get results trading forex. Maybe you have understood the market rhythm and you have developed a trading strategy that makes money. Congratulations on that, but things do not end here. There always room for the better, so this tip is to constantly look for ways that will improve your performance. You can do that by reviewing your trading activity. By doing so, you will be able to spot subtle details in your trading that could be optimized.

Tip #3 Don’t take yourself too serious

Even though you might be taking into account all the good information about trading (which is relatively impossible to do) you are still going to make mistakes. Agonizing on those mistakes and not be able to move forward can be a huge roadblock in your journey. Learn to embrace your weaknesses and your vulnerabilities and accept yourself just as you are right now. Without doing these things, you won’t be able to become a better person that you are now.

Our Forex signals made +185 pips of profit.

Our Forex signals made +85 pips profit today.

We issued 2 Forex signals today:

The first signal was to buy USDCAD:

From: Dave Hughe <plainfx@gmail.com>
Date: Thu, Oct 22, 2015 at 8:33 AM
Subject: New order
To:

USDCAD Buy 1.3146 SL 1.3099 P1= 1.3183 P2= 1.3196

The stop loss was updated to 1.3129 and later triggered for a total loss of -51 pips.

From: Dave Hughe <plainfx@gmail.com>
Date: Thu, Oct 22, 2015 at 8:53 AM
Subject: USDCAD SL 1.3129
To:

The second signal was to buy NZDJPY:

From: Dave Hughe <plainfx@gmail.com>
Date: Thu, Oct 22, 2015 at 8:58 AM
Subject: New order
To:

NZDJPY Buy 81.33 SL 80.99 P1= 81.62 P2= 81.79

Our NZDCAD trade reached its first profit target and triggered the updated stop loss orders at 0.8836 for the total profit of +83 pips:

From: Dave Hughe <plainfx@gmail.com>
Date: Mon, Oct 19, 2015 at 12:03 PM
Subject: Re: NZDCAD P1 reached, SL 0.8836

This is how this trade looked on the chart:

Notice how the price touched our target and turned around. If you wish to set your profit targets with the same precision, consider purchasing our new e-book: “Forex Hacking: Learn The Secret Tricks Professional Traders Use To Make A Financial Killing”

All 3 trades are closed now with the total profit of +66 pips.

AUDUSD and NZDUSD trades were closed with a small total profit of +21 pips. AUDJPY trade brought in +43 pips of profit:

Our Forex signal made +28 pips profit today.

We went long EURJPY this morning:

From: Dave Hughe <plainfx@gmail.com>
Date: Tue, Oct 6, 2015 at 6:17 AM
Subject: October 6
To:
EURJPY Buy 135.01 SL 134.69 P1= 135.18 P2= 135.38

The first unit was closed manually at 135.14:

From: Dave Hughe <plainfx@gmail.com>
Date: Tue, Oct 6, 2015 at 8:21 AM
Subject: EURJPY 1st unit close now
To:

The remaining 2 units were trail-stopped at 135.08:

From: Dave Hughe <plainfx@gmail.com>
Date: Tue, Oct 6, 2015 at 8:27 AM
Subject: EURJPY SL 135.08
To:

On the chart this trade looked like the following:

Our NZDCHF buy signal made +26 pips profit today:

There was just one Forex signal today:

From: Dave Hughe <plainfx@gmail.com>
Date: Wed, Sep 30, 2015 at 8:17 AM
Subject: New order
To:

NZDCHF Buy 0.6227 SL 0.6199 P1= 0.6249 P2= 0.6268

This trade reached the first profit target and the stop-loss order was updated to 2 pips above the entry price:

From: Dave Hughe <plainfx@gmail.com>
Date: Wed, Sep 30, 2015 at 9:17 AM
Subject: P1 reached, SL 0.6229
To:

The new trail stop loss was triggered getting us out of this trade with +26 pips profit. On the chart this trade looked like this:

Our short CADJPY trade made +73 pips this morning:

The actual signal was as follows:

From: Dave Hughe <plainfx@gmail.com>
Date: Thu, Sep 24, 2015 at 6:18 AM
Subject: September 24
To: 

CADJPY Sell 89.79 SL 90.01 P1= 89.62 P2= 89.51

Both profit targets were reached and the 3rd unit’s trailing stop was updated and later triggered at 89.51:

From: Dave Hughe <plainfx@gmail.com>
Date: Thu, Sep 24, 2015 at 6:53 AM
Subject: CADJPY SL 79.51
To:

On the chart this trade looks as follows:

We made +89 pips today.

On Tuesday and Thursday we made 3 trades. Two of them were closed at break even prices and one of them at a small loss of -18 pips. Therefore the total trading result for the last 3 days is +71 pips of profit.

Today’s Forex Signal was to buy USDCHF:

From: Dave Hughe <plainfx@gmail.com>
Date: Thu, Sep 3, 2015 at 8:31 AM
Subject: New order
To:
USDCHF Buy 0.9710 SL 0.9688 P1= 0.9728 P2= 0.9742

This trade reached both profit targets. The 3rd unit’s trailing stop was upgraded to 0.9749 and later filled:

From: Dave Hughe <plainfx@gmail.com>
Date: Thu, Sep 3, 2015 at 8:56 AM
Subject: USDCHF SL 0.9749
To:

On the chart this trade looked like this: