Home Trading Strategies Stop Hunting Secrets: This is the Truth Nobody Tells You

Stop Hunting Secrets: This is the Truth Nobody Tells You

Stop Hunting Secrets: This is the Truth Nobody Tells You

so why do you get stopped out of your trades why is the market right always right coming to you hand your stop-loss and then hits it and then reverse back in your favor why right is this always happening to you so that’s what we will cover in today’s video so first thing first right is this is the first time you’re watching my video my training video right hit the subscribe button below right just the link below and stay up to date right whenever I publish a new video so this way you never miss right any trading tips strategies or techniques right that I share on a regular basis so now back to our question why do you always get stopped hunted well a couple of reasons why first things first let’s say for example right this one over here the cha euro yen this market generally it’s in a range right between these highs and this looks support resistance and market right it’s railing higher and you look at this oh man you know market is bullish right look at this you know huge bullish candle alright the textbook says you know this is a sign of strength should go long so you buy and where do you put your stop-loss well maybe you know you’re not really trading with a proper position size maybe you don’t have much trading capital to start with so use you know a fixed 30 40 pips stop-loss or whichever that feels comfortable for your account size so you enter over here stop-loss put it say somewhere about here maybe just somewhere here right stop-loss right it’s a decent size of stop-loss and a next thing you know the market reverse boom stop your of a trade and then really backs in your favor and then you ask the question why why do I get stopped out well because the first mistake that you’re making is because your stop-loss right is within the noise of the market what do I mean by noise so what I mean when I talk about noise I don’t mean no white noise or you know noise right when I talk about noise right in trading it means that you are putting your stop-loss right within the normal app and flow of the market so as you’ve seen earlier right let me just draw back those areas general area of resistance area of support right bazaar not a level that I can see so this over here you know that market right this region between the 129 2000 around here okay and around here this is the normal app and flow of the market it’s just you know flowing up and down between support resistant support resistance so if you’re gonna put your stop-loss right smack in the middle of this zone then you’re pretty much asking for it right asking the market to here you know just hit my stop-loss right I’m asking for it just just give it to me that’s what you’re doing right so this is what I mean by you know you put your stop-loss right within the noise of the market right every market structured they have the arm band flow to it you need to identify where how the market flows all right and get your stops right away from the noise of the market okay so there’s a first mistake traders made there their stops is just you know within the noise of the market so second thing right why do traders get a stop hunter right because you studied you know textbooks they tell you know whenever you buy you should put your stop-loss right below support right or whenever you are short right some some traders ask me what is short right so short is the opposite of long right so when you when you’re long it means you buy and you sell at a higher prices when you short right it means that you sell right now okay and you cover the short trade and a lower prices to make a profit right so when you’re shot textbooks right forums websites they tell you to put your stop-loss right above resistance and there is another problem in itself right let me explain why with that we can use the chart of a pawn or Z to illustrate my point okay so pawn or Z daily time frame tell me the scared of this so as you can see right so now you know you know that you shouldn’t put your stop-loss right within the noise of the market and the next thing you do you put it all right at obvious market structure so again right textbook says right to put it up just above the highs just below the lows problem with this I see market rallies consolidate and any scandals as a reverse or a berry coughing pattern textbook says okay put your stop loss at birth the highest of resistance so some of you put it above this hikes some put it above this honks and then what happens the market sweeps across the heist triggering all this cluster of stop-loss so it’s up above and then continue slower so traders who put their stops above here above here half the I know stop-loss eaten eternal life okay and if you wanna see another example market comes down lower okay rally right traders trader with CDs and oh you know market bullish engulfing right and this a demand area price is about to go higher let me go long let me buy let me buy stop-loss alright textbook says put it below the swing low or maybe below this area of support whatever the case is market then swings down lower boom right and then ready back up higher okay so you can see that at this point two things number one don’t put it within the noise of the market and number two don’t put it right at obvious support resistance levels this I know very obvious levels right way if you put your stop loss it’s very easy to get triggered okay so if you avoid these two mistakes right I would say right 100% of the time there’s no guarantee in trading but you will avoid right quite a number of our trades right they would have you know gotten you stopped out had you put it you know this to trade location so now brings me to the question right how do you set a proper stop-loss okay so my technique my principle is very simple whenever you set a stop loss right it should be at a level right where if the price reaches the level it invalidates your trading setup and that level right shoot right be away from market structure so let me just share with you two two points right the more it should invalidate a level where if the price we just sit invalidate your trading setup and number two right it should be away from market structure away right we don’t put it just above resistance or just below support so let me share with you a few examples on how I go about setting my stop-loss so this is just for initial stop-loss right after it the way after which the way you want to manage the trade and everything right it’s it’s outside the scope of you know today’s lesson first example let’s see what examples I’ve got for you okay pound dollar let’s have a look so pound dollar okay let’s do okay we already have some know lines drawn over here you can see that this market right over here previous support right support support and when the market breaks below support writing let me just go down to forward timeframe market breaks below this area of support what does this area now becomes previous support becomes resistance right so now this is an area of resistance so let’s say you know you saw this market maybe it’s us to consolidate or any breakdown anything that hey you know this market there’s a good chance of it retesting back this low or even you know breaking this swing low over here so you want to go short where do you put your stop-loss do you put it here A or B or C okay if it’s me right I would usually have my stops right somewhere in the vicinity of C somewhere between B and C right any somewhere in between right I don’t set it just above this house because you know that if it’s a to close the market can just swing up my own and then reverse down lower so usually I put it you know somewhere within this area okay within this area around one 275 area where there is some buffer right above the market structure above the swing high above the resistance so again if you want to define how much buffer you should give you can use an indicator so for those of you who have you know followed me a while now call the Average True Range I usually use twenty period but you know I’m not gonna change this the concept is the same so this one it tells you that the pound dollar on the forward timeframe right on average it moves about 50 pips are every four hours so what you can do is you find out this high over here the value and then you plus 15 pips and that’s your stop-loss okay so let’s say this value let’s say is X right so X plus 50 pips right 50 pips and this less Akali wire that would be your stop-loss stop-loss right level that’s how you can use the average true range indicator to give your stops some buffer to to accommodate the noise in the market so that’s four pound dollar one example all right let me let me move on and share with you a another example so again this dis this stop loss right it means a requirement number one it’s at a level where if the price reach here it would invalidate our trading setup right it’s cuz if you think about this right the price really is up coming to here at this point right it invalidates our trading setup you now have a price breaking out of resistance right and you even have a higher look right so this tells you that know what the sellers are no longer in control for now momentarily and number two right it’s away from market structure the market structure is over here our stop loss right is a distance away from it so that meets our two criteria that we had earlier in setting your stop loss moving on home example okay music learn Canadian so if you look at this chart I just drew more little you can see that this market right it’s somewhat respecting this a downward trend line okay and on top of it you can see it is also at this area of previous support right then excess resistance resistance so again if you want to shot this market on this time frame right here I’m referring to this specific time frame right and all the examples I’m sharing with you you can see that again let’s say you you think that the market is about to roll over low all right you’re going shot say let’s say who shot on the enix candle open for example let’s see here okay where do you okay still see here where do you want to place your stop-loss a B or C I hope by now right you are getting good at this video right I would usually I put it somewhere in the vicinity of C again you can use the ATR indicator notice this on the value has changed it’s about 70 pips right on the daily time frame this market tends to move about 70 pips on the daily time frame so what it can do is find out what’s the high over here plus 70 pips and that is your initial stop-loss because if you think about this or if the market could really all the way up higher into this level right chances are this would seem now more of a trend continuation trade right higher lows and higher high then again if the trend is against you why do you still wanna you know remain in this in this in this trick right clearly you are or rather your analysis on this tree is wrong so again you can see that your stop-loss is at at a level where if the market reaches it right you would invalidate your trading setup and number two it’s away from market structure so just one final example or I to do to nail home the point so what was I looking at I think this is almost a five-year Kate five-year same concept right you can see over here market somebody’s in this area of resistance so again when you put your stop-loss so I think we just go straight to the point right somewhere in this vicinity right giving it some buffer away from this market structure because if the price can hit this level chances are this could chances are this could be a breakout of resistance and hey you know if you’re a shot right you don’t want to be you know a holding your trade alright into a breakup that’s against you okay so this again right if it’s is if you’re trading off the daily timeframe right you want to follow this to criteria so now let’s talk a little bit about multiple timeframes a little bit more of a advanced topic yet you know at one point another is your trading progresses right you would be trading off the different time frame right and still you want to apply the same concept right to your trading so let’s say for on the forward timeframe you know let’s say you don’t trade off the daily timeframe which is this one you see over here let’s say you trade off the four-hour time frame okay and you zoom a little and you notice that hey you know this market let’s say it comes down lower right and it consolidates and then it no it breaks down of this area of a support over here so at this point right you don’t necessarily have to now you know use this market structure to reference your stop-loss because number one you’re no longer trading on the daily timeframe you’re trading off the forward timeframe so whenever you set your stop loss or it has to be relative to the time frame you’re trading imagine if you’re trading off the five minutes time frame and setting your stop-loss on a weekly time frame doesn’t mix because the stops on a weekly is too white for the five minutes timeframe so it has to always be relative to the time frame you’re trading and let’s see now on the forward time frame right this price section uh you know it develops right where you get pretty much a series of you know lower highs in to support price breaks now so now the question is where do you set your stop loss alright if you want you can you know you can reference this black color this area of resistance market instruction on the higher time frame you can or again you can follow the same concept number one you want to set it right at a level way invalidates your trading setup well so what’s the trading setup in this case if your trading setup is the descending triangle right you know pretty see somewhere about here okay so if the market breaks down and goes back all the way up right you can see that this descending triangle the setup is invalidated because no descending triangle right looks looks like this where the market goes down comes up and break like this right that’s that the triangle is destroyed okay so that meet up meets our first criteria second criteria is again right away from market structure so you can see that if for example we draw this okay market breaks down okay let’s see yeah this is the downward trend line our stop loss is here right it’s a distance away from this market structure as well away from the downward trend line as well as this swing high over here so this meets our two criteria as well okay so this this is a little bit more advanced because we are now dealing with that a lower timeframe right and again same thing right whichever time frame you’re trading on right it has to be relative I mean your stop-loss or it has to be relative to the time frame you’re trading all right that’s the point I’m trying to bring across over here okay so well that’s it right I have come towards the end of today’s video I hope how about hope you know this you know helps you got some inside out of it right and prevents you from you know getting you know stopped out unnecessarily so with that said right if you want to know learn more about my trading strategy techniques methodology right you just go down to my website a trading with free no calm I’ll just put the here trading with Rainer okay all this is just one word right trading with Rainer calm right and just go down there I got a couple of guides we thing for you ultimate guide to trend-following on how to write massive trends at the market and the price action trading strategy guiding right how to you know better time your entries exits we talked about support resistance and much more right so if you want these two guides right it’s completely free just go down here trading with friend come right download it and I’ll send it to your email address for free okay so that’s it I’ve come towards the end of this video right now if you’ve enjoyed it hit the thumbs up button subscribe to my youtube channel and feedback comments questions let me know below and obk be glad to help so with that said I’ll talk to you soon you


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