Stop Loss Hunters?

Discussion in 'Trading' started by matador04, Mar 24, 2010.

  1. How do these traders operate? How can they move the market just to stop me out then let the price drift back up?
  2. I honestly believe that this is a myth for the most part.
  3. djmartin


    I agree with Chris, its a myth. You just have bad stop placement or it just happens sometimes.
  4. Are stop loss orders not visible in the book?
  5. The answer is staring you right in the face:

    Ask yourself this - where do you place your stops?

    If it's roughly 6-8 ticks beyond the swing hi/low, then guess what. You and every other Joe Idiot trader have their stops set there too. This is NOT rocket science, and smart traders understand this and basically know where on a chart most of the sheep are caught on the wrong side.
  6. I would bet money, and I have, that the GS specialist is a stop hunting maniac. I was long just above the 10:05am 5min candle yesterday. Look at the next bar. He knew it was going up hard, so he went on a little stop run so he could load up. Assclown. :D
  7. There is a thread on Forex Factory started by an ex-top currency guy at SocGen and he confirms that stop sweeps absolutely 100% do happen in the forex market.
  8. djmartin


    So you guys mean to tell me out of all the traders a MM or Spec just want to stop little o you out of your 500-1000 shares? Not trying to be mean but think about it, if you put your stop where everyone else's is at then what do you expect?? If it happens all the time then it's bad stop placement on your part.
  9. jprad


    You do realize that, for the most part, NYSE specialists are no longer carbon based, right?
  10. djmartin


    Of course it happens if everyones stop is there, why not. We have to be smart as traders and not put are stops where every other retail traders' stop is at.
    #10     Mar 24, 2010