ALWAYS check

You must ALWAYS check and question trades that don’t seem to have been handled well or you don’t think price reached a certain level.

You know the story about brokers knowing where your stop is and then taking it out? Well I just stopped out of a trade at a price above where my stop was placed!  I looked at the chart, price NEVER traded at the stop price, so I questioned the broker, asking for proof that price traded at the level of my stop – Price NEVER traded at that level!  So my broker is being forced to re-establish my trade and they’ve kindly thrown in £50 worth of free trades!  Wow!

Here’s the details of the trade:

Bought 1870 shares @ £6.744426 on 24th March 2014

Sold 467 shares @ £6.83, leaving 1403 shares

Moved stop-loss to £6.75 (price now trades @ £6.77, but never touches the stop)

Stopped out!  Made a £82 profit on the trade, BUT, I’ve been stopped out unnecessarily and I should still have 1403 shares live in the market.

The current market price is now £6.9525 and I would have had a stop placed @ £6.92

So if I’m stopped out now the profit on the trade will be approx £280 rather than £82!

Let’s say this happened 5 times a year = £1k+ of lost profits

You have to check each and every trade you take to make sure it’s processed properly.

I’m always checking trades, a few £’s here and there of mis-priced trades can add up over the year.

At this stage I have no idea WHY this mistake happened, my priority is the trade at this precise time, but I’ve asked my broker to provide a full explanation which I’m sure I’ll get in due course.

But this shows you just how important checking your trades and record keeping is – that money is best in MY account and not my brokers account or lost in the ether.

 

 

 

 

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