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This site is currently inactive as I have decided to move away from exclusively trading Forex in 2010 and as such will not be taking on new coaching clients in this area.

 



I have resumed my focus on coaching as a stock market mentor where I run a success guaranteed stock trading mentorship program

 



Additionally, you can now get access to what I consider to be the best stock options daily trade alert service.

 



Of course, I am biased and with a success rate fluctuating between 68.2% and 72.4% it is hard not to be biased.

 



If you do want to follow along with what I am doing every day you can get access to my daily stock market report 

 

 

You can read the step-by-step Bollinger Band Trading Strategy Guide - this is my main active trading strategy



Until next time


happy trading 


Mr Phil Newton or on LinkedIn Phil Newton trader

Trade Entry and Spread

macman's picture

Hi

In the ATM article, it is stated, "As I'm buying I also need to take the spread into consideration and for this example I'm assuming a 3 pip spread."  I'm not sure how the spread is applied.  My understanding is that the spread is the difference between the bid and offer price of the instrument.  So, in this case, the spread is three pips.  Now, why do we only factor in the spread on the buy?  Shouldn't we also factor it in if we are selling short?

 The price we are using as our entry is the price which is half way between the bid and offer, yeah?

 Thanks

Chris