Three setups that kill your profits – Learn to avoid them [Video]
|Most traders don't realize that the conventional way they've been taught to place stops is actually setting them up to be hunted by professionals. After years of watching retail traders get systematically picked off at obvious levels, I've discovered why so many traders lose money while smart money profits from their predictable behavior. It's time to abandon the textbook approach and master how professionals really think about risk management! Key insights:
- Revolutionary stop placement strategy - Why placing stops at round numbers and obvious support/resistance levels makes you easy prey for institutional hunters, and how positioning stops beyond crowd clusters dramatically improves survival rates.
- Market manipulation mastery - Learn to identify pump and dump schemes, stop loss hunting, and fake breakouts before they destroy your account, plus the exact red flags professionals watch for.
- Perfect entry timing - My exact step-by-step method for waiting for volume confirmation and avoiding FOMO entries that turn winners into losers within minutes.
- Advanced risk management - How to diversify away from correlated trades, size positions to avoid emotional pain, and scale out profits systematically for consistent gains.
This isn't just about moving your stops a few pips - it's about understanding why big players systematically target retail clusters at predictable levels. When you see sudden spikes clearing stops at round numbers like 1.1000 in EUR/USD, there's usually institutional order flow behind the move. By placing stops beyond the obvious crowd levels, you're avoiding the hunting grounds where retail traders get picked off. Learn why patience eliminates premature stop-outs, how to spot volume-price divergences that signal fake moves, and the exact mindset shift from "following the crowd" to "thinking like smart money." This strategy works across all timeframes and markets because it respects how institutional players actually operate - not randomly, but systematically targeting predictable retail behavior.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.