market makers do runs stops but blaming them for your error means your mind is not conditioned for trading.
Depends on whether it's a server side stop or not. I don't place stop orders until the position actually reaches my stop. The key with market makers is that they see the orders and size coming through, so they know mentally where the stops should be. They test the areas back and forth until they find the stops and then they run them and make free money.
RiceRocket or anyone else- Can you expand on this (server side stop) and if it even matters if someone is trading small size (100-200 shares) on a relatively liquid stock? thanks
This is probably also known as "revenge trades". Some traders will inevitably make bad trades because they get over eager in their attempt to "recoup" what they have lost, just like gamblers do. It can be a loss earlier in the day, the day before, or a loss just minutes ago. The setup/opportunity is either there or it isnt, rushing it will just result in more losses.
I was experiecning some of this yesterday: There appears to be a continual loop or a downward spiral - The more you are invested in something the more you will neglect to follow your system. And the more you dont follow your system the more you will be invested in something. So if XYZ goes against you and you're really invested in it. You of course want to either 1. not lose as much money as you are currently. 2. at least break even and tell yourself you will follow your system from now on (ya right). 3. the thing will come back and youll make money like you oringally did. So whats the moral of the story? Decide why you are trading; if you want inner peace then by doing the above wont help you achieve this; you will be in chaos with yourself. Find a way to center your mind and return to inner peace when you trade. If that is setting a stop and sticking to it - then so be it.