I know that theres different opinions about brokers and stop loss hunting etc
However say they do how do they do this. E… G. Does a broker just hunt stops individually or just hunt where the majority puts their stop losses. I. E. If i was to look at platforms from two different users from same forex broker then will they show the same trends candles and wicks etc?
Guess im planning to go live with $100 but would the broker treat me the ssame as someone with 10k balance in terms of reaching stop losses etc.
As a side anyone know anybbrokers with negative balance protection in australia. Seems like easymarkets, 500 and IG markets are the only ones
Whether stop-hunting happens depends largely on whether it is counted as illegal, as it is by the FCA in the UK. Check with the regulator and other good sources for your chosen broker’s jurisdiction.
Whether stop-hunting (where it is legal) damages your trading is also dependent on how close you set your stops. It would be exceptionally to find a long-term trader get stop-hunted with a stop-loss set at 1 or 2 x ATR20 from entry or current price. So, even if you absolutely cannot trade via a well regulated broker, don’t make yourself easy prey.
Brokers don’t hunt individuals they hunt the “textbook trader”. Brokers promote their learning academy’s and other sites because they promote rules like “place your stop loss 10% below the open of the order” etc
The best traders I know learnt trading through applying unconventional wisdom.For example,a mentor of mine in LA used to be a boxer. He understood “zero sum games” and how successful boxers got “in and out of the danger zone thousands of times during a fight”.So he applied that to day trading.
Once he hit his number for the day he was done, because another rule he learn’t in boxing was “retire boxing and don’t let boxing retire you”(we all know boxers who fought on way past their prime)
I’m not saying don’t learn from their academy’s but I am saying be critical and learn from different sources until you develop your unique style so your not “the textbook trader”
Iunderstand what you’re saying. Is it true that brokers dont really have time to hunt individual stop losses but go for common trading techniques. I guess they have thousands of clients so going hunting where the majority is is better tham hunting individual ones.
Brokers don’t really push their prices far from the underlying market or from other brokers’. That’s because they would get slaughtered by the traders who see this and jump in to make a quick profit before the price is pulled back to the “norm”.
But all brokers widen their spreads at times of volatility (like around news announcements) or uncertainty (like around the open and close of major markets. Watch your broker’s bid and ask prices in their actual quote screens, not their charts, to see how wide they can move their spreads at certain times. Then you can decide whether to use wider stops, and/or a longer time-frame, or use a different broker.
It’s simply the volatility. If the broker is not an outright unregulated scam then it’s a kind of potential reputation damage vs. money from robbed traders? Which one will be bigger?
On any given day it’s easy to tell where the stops are, if you know how to read a chart. Price hitting those stops before an expected move is advantageous for smart traders. It’s not a conspiracy, it’s just smart vs dumb.
