I have never bothered about slippage in Forex. I have always got filled at the price I wanted when I wanted it, no problem. Until today that is.
At 09:28 and 1 sec GMT Cable dropped 50 pips. Straight thru my stop loss……..So my stop loss was not triggered and my broker closed my order at the next quote it got. That cost me 2% on top of the 0.5% loss of my stop order. Painful or what !
You can take out insurance to cover you against slippage, but what’s the point. Just don’t smoke in bed in the first place. Very unusual for Cable to have a reaction to a news item which wasn’t expected to be so significant.
Not really a lesson as such, as yesterday I stayed in a trade whilst the news broke and it went for me, today it didn’t. One of those risks we take as traders – I’m sure I wasn’t the only one long this morning on cable. So not taking it personally of course, just be careful out there guys. Remember we are Bird watching in Lion Country.
Check out the chart and take a good laugh. I am not quite at the laughing point yet but will be by tomorrow, you have to be.
I was a little emotionally taken aback to be honest so sat out the rest of the session, I have to admit I wasn’t “man enough” to get straight back in and take those nice shorts on EURJPY and EURUSD that presented themselves later on.
ps : Thank you all for my 9,000 Blog Hits in 2010