There are no guarantees in life and there should be no gurantees in the markets. Busting trades because the market went further than you expected is garbage. There is already enough moral hazard in all the markets because of central bank bailouts.
Pabst wrote: As market sell orders are auctioning the market lower and setting off sell stops, the computer knows to do nothing other than downtick those stops into corresponding bids. If there's even ONE less bid in the system than the number of sell stops the market will cascade lower until buyers spot the opportunity to bid. Even then buyers are reluctant because we've seen time and time again instances where the Exchanges will bust buys outside of the "fair value" range leaving those buyers, who were actually supporting the market by supplying liquidity, out in the cold. Wow!! I have to say this is a great explanation. I have seen this cascade over and over again watching electronic markets. Question though, I am curious, you said you doubt the electronic market maker can see where your stops are. Do they have this knowledge if not how would they ferret out where likely stops are. Thanks again.