Why does the same location cause concentrated stop-loss exits?
After you start learning Forex,
the first thing you’re drilled with is this mindset.
- Place a stop slightly beyond the high/low
- Round numbers tend to be noticed
- If you break a clear line, retreat
None of these are wrong.
In fact, they are considered “correct.”
That’s why many people
place their stops in almost the same place.
At this point, a question suddenly arises.
If
- beginners
- intermediates
- people who learned from materials
everyone
is making decisions about stops with the same logic and the same textbook
stop-loss levels,
what is happening in that price range?
The answer was simple.
Orders accumulate to an abnormal extent.
Stops are not just “withdrawal.”
At the same time,
- market orders to sell in the opposite direction
- triggers for new entries
also occur.
In other words,
that is not a place to “protect” yourself but a point where a大量の注文が発動するポイントになる。
And there was one more realization.
When you’re losing repeatedly,
people try to act according to the textbook.
- They think they must follow the rules
- They must make the correct stop
- They must suppress their emotions
The more you think that way,
the more you end up gathering in the same place as everyone else.
As a result,
that place becomes even more conspicuous.
Only now did I connect it to my past losses.
- It should be correct, yet I’m hunted every time
- I’m taken away by a one-second wig
- Afterward, it extends in the direction I thought
It wasn’t a coincidence.
That price wasn’t a “place where many people err.”
It had become a “place where people who acted correctly gathered too much.”
So then,
who are the ones who use those orders?
And,
just by avoiding that place
could the results really change?
From here on,
this will be a bit more in-depth.
Next time,
we will further unravel how this “same place”
is being treated.
a little more.