Secret #2: Your Broker Doesn’t Hunt Your Stop Loss
I know this is hard to believe, and I agree that there might be a few bad brokers out there (less than 1% of brokers).
But the vast majority of brokers who are regulated by MAS, FCA, ASIC and other regulatory bodies…
They don’t hunt your stop loss.
Because from a risk to reward perspective, it doesn't make sense.
Let me ask you…
What is the size of your trading account?
Chances are, most of you reading this right now would have about a few hundred to a few thousand dollars.
Now, if your broker wants to hunt your stop loss, what’s his reward?
But the risk to the broker is that you might screen-capture your charts.
You can actually prove it.
For example, you compare your broker’s data feed to another broker and realize that there is no spike.
All you would need to do is to screenshot it and upload to social media and that’s it.
The broker risks losing the license because of trying to hunt your stop loss.
So from a risk to reward perspective…
Trying to make just a few hundred to a few thousand dollars off you with a risk of losing their license, reputation, and credibility just doesn’t make sense.
This is why I say that most brokers don't hunt your stop loss.
With that aside, I do agree that whenever you enter a trade…
The market somehow seems to know where your stop is, triggers it, and moves back in your intended direction.
Why is that?
Let me explain why this happens…