Stop loss hunting myth

squalodon

Regular Member
I just wanted to get everyone's idea? or opinion on this matter?

Do you guys believe that brokers do hunt your stop losses?

I for one don't (it is my belief that most of these traders are just making excuses for their failed trades)
 

TheForexGuy

Forex Mentor
I believe it's mostly a myth, most traders are trading lower time frames that are loaded with market noise. Lot's of whipsawing when you're on those low charts, traders just blame these market vibrations on brokers stop hunting.

Especially with regulated brokers, they are forbidden to manipulate prices, so I don't think they are going to be risking their license to stop their clients out. They've already made their spread commission when the trade was opened, whether the trader loses or profits, the broker always benefits.
 

squalodon

Regular Member
Yeah i find it's weird that there are some guys (forex traders).. that are telling people not to put stop losses.. (just alarms) so that the forex brokers cannot hunt their stop losses.. they should just manually stop their trade after reviewing the movement after the alarms..

because they believe that brokers hunt their stop losses.. i for one.. have had the experience of having a power failure while a trade was open (due to heavy typhoons in the Philippines)

So i never want to trade without a stop loss.

I agree with you TFG.. and to add i think some of these people can't just admit to themselves that they made a faulty trade. that's how i'm guessing this myth on stop loss hunting came about.
 

mang_ncep

Forum Newbie
In reality that is a myth, there may be some unscrupulous brokers in some far flung corner of the world that do practice that, however generally mainstream brokers that are regulated will not, it is very very rare. There are however some people out there that are actively hunting your stops but it’s not your broker. Try FXB Trading.
 

Kooyar

TFG Forum Junkie
Find a strategy that does not need you to setup a stoploss. Do your evaluations on higher time frames to avoid the noises. Long term view in the market never change in a day or so. Big players never like suprises. You have enough time to close a trade if you come to a conclusion that your initial evaluation was wrong. Go long term in your trades and experience the difference.
 
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