Technical support or shark pool? Why your Stop Loss is the breakfast of whales
Sure, it's happened to you: you open a trade at a "perfect" support level, set your Stop Loss to protect yourself, and two hours later... boom! A spike out of nowhere takes you out at a loss, and the price shoots to the moon without you.
It's not paranoia or bad luck. It's simply that you were the lunch for a whale.
Us little fish are taught that supports are concrete walls, but for the big players, they are money pools. If a shark wants to buy millions of dollars cheap, they need a lot of people to sell at the same time. And where do thousands of automatic sell orders pile up? Exactly: right below that obvious support where everyone places their Stop.
Whales push the price for a bit, trigger the automated panic of the school, and scoop up all those coins at bargain prices. In minutes, the price bounces back, and you're left staring at the screen, not understanding a thing.
Today's lesson: If you can't see where the liquidity is on the chart... it's because the liquidity is you. Stop placing your exits where everyone else does and give your strategy some room to breathe.
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