[Music] if there's something called stop hunting that takes place in trading world it's always looked upon as negative certainly at the retail trader level institutional traders are taught from their first day that they buy good levels or they don't buy it all unfortunately most retail traders will wait for some confirmation before they get in that could be a candle pattern to the moving average cross or whatever institutional traders will buy at the level now most traders will put their stop-loss a pic under the last low and they will invariably put their stop-loss at exactly where
the institutional orders are I think the institutional traders are just doing with institutional traders do putting their entry points at very good levels however if you are trading at the institutional level it's not always easy to get sold at the retail level if you want to buy 100 shares you order by the pound against the dollar at a five or a point you press the little button and you've got it at the institutional level is not that simple and you've got in on occasions to actually generate the liquidity to get a board I don't think
that anybody looks at where the stocks are but they will say to themselves we know pretty sure that most of the stuffs will all be crowded around this obvious level so they will bed the market at that particular level all you need is one person to chick a night and the markets are going to go where the beds are and all those people will be taken out so I think that if you do not think long and hard about where you're going to put your stops that you're going to find that you can quite easily
die in a sea of stop losses okay that earlier we talked about one of my things that I think about all the time and here's an exercise to some people and next time you're just about to put a trade on you pick up something heavy and you just go fit and then you write down on a piece of paper where you were going to buy and where you're going to put your stop-loss don't buy it but put an order and to buy it at where you're going to put your stop loss and then just watch
how many times the market goes to your order okay markets will go to the obvious stops most of the time and one of my rules is that I want to put my entries where the masses put their stops so I think that you can think your way through most of that but you really need to spend some time and being brave and getting in at a good level if you don't get in a good level there's nothing that upsets me more than a guy's saying that this is a very risky trade I'll use a tight
stop-loss that's just rubbish because but you'll get stopped going over and over and over again the stuff needs to be where the stop needs to be so if your entry is sloppy then your stop-loss is going to have to be a red bus away from where you got in act to give yourself a chance of staying in the mood the average true range will help with that most traders will look at stop-loss of two and a half times the average true range or something like that nevertheless if you want to get in the flow stop
losses institutional levels you've got to be brave the institutional traders will use Fibonacci levels that will use trend lines or use simple horizontal support and resistance levels to actually look for confluences to try and place their orders nothing clever okay and unfortunately most retail traders as I say we'll look for some form of confirmation and their stop-loss will then be too close and then get taken out in the noise you
