I’m still not suggesting that the FXCM stop hunting accusations you read about across the Internet have any validity. Frankly I am too new to forex trading to go around making accusations of the kind. It is more likely that my losses are the result of poor trading technique than that I am a victim of underhanded practices by Forex Capital Market (FXCM). I still believe they would have no reason to try to pocket every little dime they can get their hands on.
That said, I find it very interesting, that after the situation this morning where I entered a trade on the USDCAD and set a stop loss at 25 pips, before I knew it the market suddenly experienced a rapid movement where up to that point it was moving at a steady even pace. The rapid movement of course took out my stop; but what’s interesting to me is that after taking out my stop the rates very soon reversed back to where they had been when I entered the trade and for the rest of the trading day it never went back to where I had set my stop. In fact, it did what I had anticipated it would do in the first place when I decided to enter on a short order to collect a quick profit while the rates were still trying to settle in above the 10420 range.
Is FXCM stop hunting? I prefer to believe they are not; but I still think it’s bizarre that the market does the opposite of what is anticipated 100% of the time when trading in quieter less active conditions. I’m sure there’s an explanation and I’m sure my losses are all honest losses incurred as a result of lacking trading skills.