What is the psychology of "selling at the bottom" for a loss

You are a weak hand.

The market likes to shake out weak hands before blasting higher.

Or as the WallStreetBets retards like to say, you have paper hands, instead you need to develop diamond hands

 

How does it "shake out" weak hands?

 

Im aware of stop loss hunting and liquidity clearouts but how does "market" shake people out im not familiar with that concept

 

Don't listen to that noise. So many people talk about "stop hunting" to "shake out weak hands".

There's no such thing. There is NO SUCH THING as stop hunting. There is not a cabal of traders at a commercial desk looking for small retail guys with a few shares with a stop-loss order going "I'm gonna' take them out." On the ladder, all they see are limit orders at a price point. They do not know who is buying to cover, or entering a new long, for example.

 

They don't have to know. Just move price this way and that accomplishes it.

 

It sounds like you have no trading plan,sounds like you're just "wingin' it as you go". Better develop a trading plan before you lose all your money.

 

*throws a rotten fish at Suntrader*

EXACTLY! Move the price a certain way, and some of the trades will be stops, through osmosis! That does not mean stop-hunting! GAH!

What we need for confirmation of my theory is someone who works at a commercial desk and can verify that YES, they actively seek out small orders that are stops, and avoid the rest.

 

Of course they prolly don't specifically target stops but they damn well hope to get some.

Its an oxymoron but stops move markets.

 

Ask yourself why?
Why didn't I get out with a small loss?
Why did I sell when I did?
What triggered your sell when you did? Why not the day before or the day after?

 

I thought it was "market orders move markets".

Which of course is ephemeral.