Have you ever wondered why your stop-loss orders get 'swept' on both sides when trading in hedge mode? 😹 The crypto market is not only full of risks but also a place where your money can evaporate quickly without knowledge and strategy. Here are the main reasons:

🌪️ Why Are Stop-losses 'Hunted'?

1️⃣ Low Liquidity Areas:
The crypto market often has low liquidity areas. Here, 'market makers' can easily identify the stop-loss levels set by retail investors and use them to accumulate liquidity. In hedge mode, you have stop-losses on both buy and sell orders, making it easier to 'hunt' on both sides.

2️⃣ Whale Interference:
Whales often intentionally create sharp price increases or declines to trigger your stop-loss, forcing you out of your position while they profit from the chaos.

3️⃣ High Volatility:
Crypto is known for its unpredictable volatility. Prices often 'break through' support and resistance levels to 'trap' traders, no matter which side you are on.

✅ How to Avoid Stop-loss Hunting?

🔍 Place smart stop-losses:

  • Avoid placing stop-losses at price levels that most traders easily target (close to support/resistance levels).

  • Be flexible and analyze historical data to understand how the market behaves in those areas.

🗺️ Analyze Support and Resistance Zones Thoroughly:

  • Key price zones are where 'hunting' is likely to occur. You need to research thoroughly and avoid dangerous areas.

⚙️ Use Trailing Stop Orders:

  • The trailing stop system automatically adjusts to price fluctuations, helping to protect profits while limiting the risk of being 'swept' stop-loss.

🐋 Monitor Whale Activity:

  • On-chain data and tools for monitoring large transactions can provide signs of whale movements. Use them to gain an advantage.

🎯 Success Requires Discipline and Understanding

The crypto market is not for those who lack patience or seek quick wealth. It requires:

🔑 Discipline: Don't let emotions dictate your decisions.
📚 Knowledge: Continuously learn and update market information.
🛠️ Strategy: Every step needs a clear plan.

At @blogtienso , we are always with you to enhance your trading knowledge and skills. Remember, existing and succeeding in the crypto market is not easy, but with the right strategy, you can overcome any challenge! 💪

DYOR! #Write2Win #Write&Earn $BTC