Stop Loss Hunting

Introduction

Stop loss hunting is a form of market manipulation that is illegal in many countries. This means that it's important to be aware of how you're using stop-loss orders as you're trading on small time frames.

Stop loss hunting occurs when market makers attempt to force retail traders out of their positions by moving the market against them. This is a form of market manipulation, in which traders' orders are deliberately ignored by other traders.

When you place an order on a stock exchange, it can be filled immediately or filled at some point later in time (called "slippage"). If you place your order at 9am and want it filled at 9:15am, then there's no problem if the price changes during that period but if it changes again before 9:15am then your trade will have been canceled because its "stop loss" was hit during this time frame.

Stop loss hunting is a form of market manipulation.

Market makers are required to provide liquidity to the market, but they also seek to make profits.

Stop loss orders (also known as SL orders) are used by traders who have entered a position with a target price below which they will close out their position if it moves in an unfavourable direction for a certain amount of pips. This can be done if you think that the price has gone too far in one direction and needs correction, or it could simply be because you don't want your investment capital at risk of losing more than what was originally invested into it!

We have done a short video on stop loss hunting and on which day the same is going to happen the most has also been discussed in the video and you must take the time to.go through the video.

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Please watch this short one-minute video and understand the big players' game of stop-loss hunting to trap retail traders. 

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Market makers are required to provide liquidity to the market, but they also seek to make profits.

They can do this by trading against retail traders in order to keep prices stable and prevent large swings in them. However, market makers aren't required to trade with retail traders—they can choose not to do so for any reason they see fit!

A stop loss order is used to limit losses and close a trade if it moves in an unfavourable direction for a certain amount of pips.

The stop loss function can be configured on any chart or indicator by clicking on the arrow next to the ticker symbol.

Stop loss orders are triggered once per trading day at 9:00 AM Eastern Time (ET). If your position has moved beyond the trigger point, then that particular position will automatically be closed out by your broker after two hours of trading without any action from you.

In stop-loss hunting, market makers target trades with large stop losses and then manipulate the price so that their orders can be executed quickly.

Stop-loss hunting is an illegal practice in which market makers target trades with large stop losses and then manipulate the price so that their orders can be executed quickly.

In other words, if a market maker wants to sell 1,000 shares at $100 per share, but only has 500 shares available for purchase (the remaining 500 are held as inventory), then instead of selling directly to you through your broker's trading platform or over the phone or in person (which would take too long), he'll place an order on the floor of the NYSE that will trigger a sell order upon reaching its target price ($100). This way he can get his hands on those shares right away without having to go through another step first—and hopefully before anyone else has noticed what's happening!

Once the traders' stop orders are triggered and they leave the market, they no longer pose a threat to the market maker.

When a trader places a stop loss order, it means that if the price moves in an unfavorable direction for a certain amount of pips/cents, then that trade will be closed. This can happen because of two reasons:

• The market maker has already triggered his own stop loss order and wants to take profits; or

• He is unable to close the position without taking losses.

This means that dealing in small amounts will increase the chance of your order being filled on your terms because there is a much lower liquidity pool available.

When you trade in small amounts, the liquidity pool available to fill your order on your terms is much smaller. This means that dealing in small amounts will increase the chance of your order being filled on your terms because there is a much lower liquidity pool available.

You can use a stop loss order to close your position if the market moves in an unfavourable direction for a certain amount of pips (pips are short, but not precise units).

Be aware of how you're using stop-loss orders as you're trading on small time frames.

Smaller time frames are more susceptible to manipulation by large traders and can be a bit more difficult to navigate, but they also give you a better chance at seeing an opportunity before it's gone. For example, if I'm trading on a 5-minute chart, I might only want to use a three-point stop loss order so that my entry price is slightly below the current price. If someone were looking for an opportunity in this market, they would probably wait until after 5:00 pm EST before entering their position because this would increase their odds of success since there will likely be less competition for those positions at that point in time than there would have been earlier in the day or evening hours."

Conclusion

While stop-loss hunting is a common practice for market makers, there is no indication that it is widespread. It can be argued that it's good to have an exit plan in place if you are prone to get stopped out and may not be able to recover from the losses incurred. However, we strongly recommend avoiding stop-loss hunting by using different strategies or risk management tools such as trailing stops or one-touch longs instead of using stop-loss orders altogether.

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