How does the main force make money by hitting the stop loss?
Recently, a fan told me: He is a little desperate about this circle. He was also exposed when he went long and short. Is the main force staring at my account to snipe me?
Me:..........
What I can say is that no one is staring at your account to snipe you. The main force is just to obtain liquidity and sweep you out.
In the eyes of big funds, there is no stop loss, only liquidity. He knows that there are a lot of pending orders in the stop loss area, so he will go to trade, although he will be temporarily trapped. But he can take advantage of the funds to actively hit the price to get rid of the trap and then pull up the market. This is the common double bottom in the chart.
Imagine if you go long at 65,000 BTC and set the stop loss at 30,000. Do you think you will be swept away? The liquidity that the main force wants is not with you. In reality, you stop loss frequently because you always set the stop loss in the area with abundant liquidity or on the way to the area. It is you who are willing to stand there and get beaten. Which big fund is thinking about your retail investors' trifles and sniping you?
It is useless to know the above truth, because retail investors have no capital advantage, so stop loss must be set, and the common meaningful stop loss orders are naturally dense, and you can't predict whether the stop loss will be hit. Therefore, you can only rely on long-term repetition to gain probability advantages, plus your will and discipline to make profits. Don't dream that you can predict the future.
The most stable is to hoard coins in the spot market, and make money in the bull and bear cycles, which is the real money. You can just treat the rest as a passing cloud, just listen to it. Remember the words of steady profit: Invest in the currency circle, and arbitrage outside the market!
