Projekt Fear! | Traders Hideout


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Projekt Fear!

  #7 (permalink)

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London UK
 
Trading Experience: Beginner
Platform: CQG
Broker/Data: S5
Favorite Futures: Futures
 
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Posts: 4,820 since Sep 2015
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DionysusToast View Post
Here's the thing....

It wouldn't matter if people could see your stops or not. Unless you are trading 1000's of contracts a clip.

If you step back and have a think about what a stop order is (as related to exiting a position).

- It's an order to buy ABOVE current prices
or
- It's an order to sell BELOW current prices

Let's say you were selling oranges. You were in a market where all the other stalls sold oranges for $5 a kilo. If the customers walk to your stall, they pay $3 a kilo. Will people be inclined to buy at $5/kilo or will they pass those deals and pay $3?

Or another way to look at it. If you had a good idea where stops were and only ever entered the market at those advantageous prices - what would be the outcome?

If there is a ton of sell stops below us and we wanted to buy - isn't there an incentive for us to wait for those better prices before buying.

So when a market hits an area with a lot of stops - was it manipulation or just markets doing what markets do best?

If you trade 3 lots, then you aren't going to get stop hunted, it would not matter where you put your stop - it would not be worth the effort to run those stops. If, on the other hand, you put your stops where there's already another 5000 stops - that's a different matter entirely.

Yes, completely agree on this. I wrote another post months ago to this effect. Whether someone is stop hunting or not to us retail traders it does not matter. Whomever would have the capacity to stop-hunt wouldn't be certainly after me.

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