The Hunt: How Markets Target Your Stop Loss Orders

Markets don't just move randomly. They hunt. Every stop loss you set is a target on your back, and smart money knows exactly where to find them.

Why? Because when enough retail traders cluster their stops at the same price level, it creates liquidity. One quick spike below—or above—that level triggers a cascade of forced selling. The liquidation volume spikes. Volatility shoots up. And the price snaps right back.

It's not conspiracy. It's structure. It's how order books work.

The takeaway? Your stop loss is useful. But understand the game you're playing. Place it where the crowd doesn't. Or use tighter risk management that doesn't scream your exit strategy to every algorithmic trader scanning the market.