Banks don't hunt retail stop losses because traders make up only 5% of daily volume. The real issue is that most traders cluster their stops at obvious places like recent highs and lows, making them easy to hit naturally. Smart traders place orders where the crowd's stops are, not because banks are hunting them, but because that's where the price moves.
Do you think that banks and institutions hunt for retail CFD traders' stop losses? No, please don't. Now here's the here's the thing what I want to say to you is this. Also, you worked on a CFD broker, so yeah, but bollocks to that. Sorry, don't swear, Uncle Tom. Look, I did some intense work on the whole conspiracy theory of institutions chasing. Yes, and one of the things that I use as a resource for my argument against it is the BIS report. BIS is the Bank of International Settlements. And in the Bank of International Settlements, they estimate that retail traders, which basically is still you and I, definitely, we make up 5% of the daily volume. We are not even small fish. We are so insignificant. No, the real problem is that people like you and I and everybody else, we always place our stop loss above the old highs or below the old lows because that's what we do. And we don't have big budgets either. So therefore, we are easy target. Of course. Do you know what my best friend and mentor David Paul once said? And maybe you should pass that on to your students. He said, I always like to place my orders where the crowd placed their stop loss. Definitely.
