StopLosses and Role of Liquidity Providers
Today i want to discuss with FF members about stoplosses , Every trader who wants to be safe in market or protect his account from unusual moves places a stop loss , most common method uses by trader is stoploss below the support or above resistance some traders place rigid stops of specified pips.
The most common problem we see that many lot of traders complain that broker hunted their stops while some others say that market is fixed and it just came to my stops and then reversed.
Many of the GURUS say that no one wants to take your stops their are thousands of traders trading and its impossible for any one to take a specified stops.
My opinion as far brokers are concerned they cant give spike more then 5 pips most of the times
Liquidity providers are the animals in the market who can do what they want to do and most of the time they are after traders money.
How? IMO a liquidity provider knows where are the pending orders of 5 or 10 retail brokers so ..... let me show you a chart to support argument..
https://charts.mql5.com/5/493/eurusd-d1-tw-corp-2.png
https://charts.mql5.com/5/493/eurusd-d1-tw-corp-3.png
Now IMO what these liquidity providers do is just SELL some cheep currency to others banks with low volume to push it down. Execute stops and then buy back from these banks using these orders. No hard work easy money , both liquidity providers and brokers are in profit and the trader looses cause of tight stops.
Whats your take on it ? (correct me if am wrong)
Today i want to discuss with FF members about stoplosses , Every trader who wants to be safe in market or protect his account from unusual moves places a stop loss , most common method uses by trader is stoploss below the support or above resistance some traders place rigid stops of specified pips.
The most common problem we see that many lot of traders complain that broker hunted their stops while some others say that market is fixed and it just came to my stops and then reversed.
Many of the GURUS say that no one wants to take your stops their are thousands of traders trading and its impossible for any one to take a specified stops.
My opinion as far brokers are concerned they cant give spike more then 5 pips most of the times
Liquidity providers are the animals in the market who can do what they want to do and most of the time they are after traders money.
How? IMO a liquidity provider knows where are the pending orders of 5 or 10 retail brokers so ..... let me show you a chart to support argument..
https://charts.mql5.com/5/493/eurusd-d1-tw-corp-2.png
https://charts.mql5.com/5/493/eurusd-d1-tw-corp-3.png
Now IMO what these liquidity providers do is just SELL some cheep currency to others banks with low volume to push it down. Execute stops and then buy back from these banks using these orders. No hard work easy money , both liquidity providers and brokers are in profit and the trader looses cause of tight stops.
Whats your take on it ? (correct me if am wrong)