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How Your Stop Losses Are Working Against You

21 August 2024
in Altcoin
Reading Time: 3 mins read
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Unmasking the market’s hidden predators.

The Dark Side
Picture generated by Writer by way of Leonardo.AI

For non-Medium members, click on right here to learn this story without spending a dime!👌

Think about you’re in the midst of an exhilarating treasure hunt. You’ve mapped out your route, set your traps, and are prepared to assert your prize!

However simply as you attain the treasure, a crafty rival swoops from the shadow, triggering your traps and leaving you empty-handed.

This situation is eerily just like what many people expertise with stop-loss looking within the monetary markets.

So What’s Cease Loss Looking?

Cease-loss looking is a technique utilized by the so-called “Good Cash”, usually institutional buyers, whales, or market makers, to govern the market by triggering stop-loss orders positioned by common retail merchants such as you and me.

Alternatively, a stop-loss order is a instrument we use to restrict our losses by mechanically promoting an asset when its value falls to a sure degree.

Whereas this appears like a sensible security internet, it will probably generally work in opposition to us.



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