I have read/heard in the mix of things since trading that sometimes your stoploss and target orders can be seen by other traders(certainly not at-home traders)? As a result your positions can be stopped out by market makers I assume. Is this a situation only from the 'old days' or is it present day also? If so is it isolated to a few markets or most in general? I'd think electronic markets are somewhat invisible. just curious........
stops are "seen" because professional traders know from experience where all the amateurs place them. This is human nature to place them just above resistance or just below support etc. Stops wil continue to be "seen" --and run-- in electronic trading as well.
No one can see your stops, don't worry. We have no idea where your stops are. We don't want to trigger your stops. We have no interest in your stops. None of us have ever looked for your stops. Your stops are safe from detection. Its okay to put your stops wherever you want to Your eyes are getting heavy. Each time you exhale you feel more relaxed At 10:00am PST you will buy 10 contracts of the Mini Russell future (ER). You will put a 2 point stop under the most recent swing low. Your arms will start to feel very heavy When you see your stop get hit, you will feel very happy and you will smile. When you wake up you will be naked in your backyard.
I sit with 100 other professional traders, and each and every one also speaks of a "they" out there who is responsible for the losses, stops, etc... "They" this, "they" that all day long.
I have to agree with you....for 30 years "we" ARE "they" ... and we don't see anything, LOL. Many stops are held by the retail broker, so they "see" them. Read this for a bit of insight into how MM's can "see" stuff. http://www.stocktrading.com/wsjknight1.shtml Since the retail trader only accounts for single digit percentage volume on the exchanges, I wouldn't worry too much. On the other hand, we teach our people to only use "alerts" and never place stop orders (for several reasons). Don
. Don Wrote: .....and never place stop orders (for several reasons). Don, .....Could you please elaborate on these reasons? Thanks, +-*/ Math_Wiz
Sure....the primary reason is that I want to "see" what the market is doing when the alert goes off....(was it a bad print, was it a negotiated trade which generally bounces back, was it a trade through, etc.) ...is it news related, sector related, disaster related...is there another stock that I should buy or sell to hedge vs. cover a losing trade....all part of tape reading. Stop orders are designed for investors who cannot sit and watch the market all day, IMO. Don