Does the Market Plays Against You?

When traders face a series of losing trades, they begin to suspect that their trades are the market’s target. There are many pictures proving that the price gets back to its initial level after triggering a Stop order.

Of course, it all sounds ridiculous until the trade size exceeds, for example, 50 lots. With a greater lot size, it’s hard to say which order the price really “stopped out” of the market.

This is why this question, just like the previous ones, will never get a straight answer.

Plausible answer. In 99% of cases, the price DOESN’T hunt your trades in particular. However, It’s a different story if you’ve placed your trade at the same level as all the other market participants have done. If this is the case, you will see an entire cluster of, for example, Stop Loss, and the price is very likely to trigger. By the way, we have an indicator of such clusters.

There are also cases when a certain broker sees volatility happening in an absolutely calm market and the price immediately triggers your particular Stop Loss and comes back. However, this looks rather like a foul play of your broker against you, and it’s not the market’s fault.

Conspiracy answer. Even assuming that the market is governed by one authority, it’s hard to imagine the latter is playing against anyone in particular. Indeed, when someone buys, someone else sells at the same time, so the only possible thing that can happen is that the market is playing against the majority. The last phrase makes sense, but there’s no conspiracy, since the market nature is that the majority loses and the minority wins.

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