Stop loss hunting on cover and bracket orders

[Ronith12]

Hello traders.
I wanted to ask whether there are any traders who are successful using bracket and cover orders, because I've heard that the hedge funds and investment banks, or anyone with huge amount of money can view our stop losses and manipulate the stock price accordingly and our stop losses get hit.
If it's true then should I trade only in NIFTY50 stocks since they have a lot of volume and are difficult to manipulate? Please help me out. I want to use the high leverage(about 20x) provided by brokers but don't want to lose money just because someone can view my stop losses.

 

[MSN1979]

A good trader focuses on his weakness rather then focusing on big banks and big managers. If you SL is getting hit you might to reconsider and re assess your SL placement strategy.
For trading consider NF BNF or else NIFTY50 stocks are also ok.

PS: For all the traders I know a lot of times SL will hit, but its the few trades that make it break even or profitable in the end.

 

[Ronith12]

A good trader focuses on his weakness rather then focusing on big banks and big managers. If you SL is getting hit you might to reconsider and re assess your SL placement strategy.
For trading consider NF BNF or else NIFTY50 stocks are also ok.

PS: For all the traders I know a lot of times SL will hit, but its the few trades that make it break even or profitable in the end.

I'm saying this because lot of people talk about this and a popular YouTuber Nitin Bhatia also talked about this topic in one of his videos. Anyways thank you for your answer.

 

[MSN1979]

I'm saying this because lot of people talk about this and a popular YouTuber Nitin Bhatia also talked about this topic in one of his videos. Anyways thank you for your answer.

Follow Learn to Fish thread by Vijay Bro

 

[Loss_Lover]

Hello traders.
I wanted to ask whether there are any traders who are successful using bracket and cover orders, because I've heard that the hedge funds and investment banks, or anyone with huge amount of money can view our stop losses and manipulate the stock price accordingly and our stop losses get hit.
If it's true then should I trade only in NIFTY50 stocks since they have a lot of volume and are difficult to manipulate? Please help me out. I want to use the high leverage(about 20x) provided by brokers but don't want to lose money just because someone can view my stop losses.

Stop-loss hunt is a paradox in reality. Do we really need to know why we lose a trade? It's just the opposite of our expected outcome. We can either be right or wrong. We have no control over the outcome. Stop-loss hit simply shows that we were wrong, look for next trade. Move on......

It's more like appearing a school class-test with every single trade. Some questions you get right, some wrong. Back then in school, you didn't use to cry foul on teacher for being wrong. You were just wrong, so no mark scored, simple! Why now?

It's our money-related emotional foreplay that converts a small potential loss into a big one. Otherwise, if we stick to our rule the outcome after several hundred trades will approximate to the win-loss% of our strategy, isn't it? We consistently make a mistake to observe every trade individually instead of analyzing a certain set of trades. Blame huge leverage that you take, not the Trade or the Big Boys who are providing liquidity for you and me to swim!

After three years of full-time all sorts of trading, one piece of suggestion that I can give you is that we have no right to "judge" a Trade, rather, we need to "execute" the Plan no matter what......

Coming to Stop-Loss placement, I maintain a fixed x% on my capital (without leverage) that I can afford to loose several times in a row which will allow me to survive in the market even after being hit several times. Believe me! It is the most toughest thing to do in Trading with due-diligence and discipline. Now, in-order to escape the typical scenario of markets hitting our stop and run in our original direction, I consider Volatility and ATR for Stops within my "Affordability". Search for Cynthia Kase's work for better understanding.

Thanks for reading...
All the Best...

 

[Ronith12]

Stop-loss hunt is a paradox in reality. Do we really need to know why we lose a trade? It's just the opposite of our expected outcome. We can either be right or wrong. We have no control over the outcome. Stop-loss hit simply shows that we were wrong, look for next trade. Move on......

It's more like appearing a school class-test with every single trade. Some questions you get right, some wrong. Back then in school, you didn't use to cry foul on teacher for being wrong. You were just wrong, so no mark scored, simple! Why now?

It's our money-related emotional foreplay that converts a small potential loss into a big one. Otherwise, if we stick to our rule the outcome after several hundred trades will approximate to the win-loss% of our strategy, isn't it? We consistently make a mistake to observe every trade individually instead of analyzing a certain set of trades. Blame huge leverage that you take, not the Trade or the Big Boys who are providing liquidity for you and me to swim!

After three years of full-time all sorts of trading, one piece of suggestion that I can give you is that we have no right to "judge" a Trade, rather, we need to "execute" the Plan no matter what......

Coming to Stop-Loss placement, I maintain a fixed x% on my capital (without leverage) that I can afford to loose several times in a row which will allow me to survive in the market even after being hit several times. Believe me! It is the most toughest thing to do in Trading with due-diligence and discipline. Now, in-order to escape the typical scenario of markets hitting our stop and run in our original direction, I consider Volatility and ATR for Stops within my "Affordability". Search for Cynthia Kase's work for better understanding.

Thanks for reading...
All the Best...

Stop-loss hunt is a paradox in reality. Do we really need to know why we lose a trade? It's just the opposite of our expected outcome. We can either be right or wrong. We have no control over the outcome. Stop-loss hit simply shows that we were wrong, look for next trade. Move on......

It's more like appearing a school class-test with every single trade. Some questions you get right, some wrong. Back then in school, you didn't use to cry foul on teacher for being wrong. You were just wrong, so no mark scored, simple! Why now?

It's our money-related emotional foreplay that converts a small potential loss into a big one. Otherwise, if we stick to our rule the outcome after several hundred trades will approximate to the win-loss% of our strategy, isn't it? We consistently make a mistake to observe every trade individually instead of analyzing a certain set of trades. Blame huge leverage that you take, not the Trade or the Big Boys who are providing liquidity for you and me to swim!

After three years of full-time all sorts of trading, one piece of suggestion that I can give you is that we have no right to "judge" a Trade, rather, we need to "execute" the Plan no matter what......

Coming to Stop-Loss placement, I maintain a fixed x% on my capital (without leverage) that I can afford to loose several times in a row which will allow me to survive in the market even after being hit several times. Believe me! It is the most toughest thing to do in Trading with due-diligence and discipline. Now, in-order to escape the typical scenario of markets hitting our stop and run in our original direction, I consider Volatility and ATR for Stops within my "Affordability". Search for Cynthia Kase's work for better understanding.

Thanks for reading...
All the Best...

Thanks. Noted.

 

[Newbie Day-Trader]

I totally agree with @MSN1979 & @Loss_Lover. Either one has a strategy with an edge or one doesn't; if one does then one should focus on applying it consistently without getting emotional, if one doesn't then one should focus on finding one or stop trading altogether; focusing on all of the other mumbo-jumbo does nothing but leave one angry & frustrated at things one can't control.

 

[Ronith12]

I totally agree with @MSN1979 & @Loss_Lover. Either one has a strategy with an edge or one doesn't; if one does then one should focus on applying it consistently without getting emotional, if one doesn't then one should focus on finding one or stop trading altogether; focusing on all of the other mumbo-jumbo does nothing but leave one angry & frustrated at things one can't control.

It's not that. I simply asked because a lot of professional Youtubers like Abhishek Kar and Nitin Bhatia have spoken in their videos about stop loss hunting. So if this is really true, I would just stay out of it and never use bracket and cover orders again. Simple.
I'm thinking that I can use these orders in NIFTY50 and NIFTY100 stocks in the cash segment because they have high volume and are less likely to be manipulated.
What do you guys think?

 

[annuvimt]

I thought of asking same question but see some discussion going on here related to same topic.

First of all we need to confirm whether it is possible to see stoploss by any trader (Institutional, Bank or any big player). or it is just a myth ?

 

[Ronith12]

I thought of asking same question but see some discussion going on here related to same topic.

First of all we need to confirm whether it is possible to see stoploss by any trader (Institutional, Bank or any big player). or it is just a myth ?

Exactly. Can someone please just answer this question clearly?