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Imagine you’re in the middle of a thrilling treasure hunt. You’ve mapped out your route, set your traps, and are ready to claim your prize!
But just as you reach the treasure, a cunning rival swoops from the shadow, triggering your traps and leaving you empty-handed.
This scenario is eerily similar to what many of us experience with stop-loss hunting in the financial markets.
So What is Stop Loss Hunting?
Stop-loss hunting is a strategy used by the so-called “Smart Money”, often institutional investors, whales, or market makers, to manipulate the market by triggering stop-loss orders placed by regular retail traders like you and me.
On the other hand, a stop-loss order is a tool we use to limit our losses by automatically selling an asset when its price falls to a certain level.
While this sounds like a smart safety net, it can sometimes work against us.
