Scalpers often place stop-loss orders above the recent high, where they get crowded with other orders. When the market accelerates, these stops trigger together, causing massive slippage. Move your stop 1-2 ticks below the high instead to exit before the rush.
A small trick for the aggressive scalpers. There is a way to avoid slippage. Put the stop loss not above the high. Above the high there are a lot of orders and what you see is that market will boom accelerate. You see that the market even if it's a failed auction now is going down, it accelerates. So you lose an additional amount that you can protect. How you can protect them? Just put your stop loss 1 or 2 ticks below the high. So you are taken out before everyone that is— before the acceleration takes place. And it's worth it.
