what smart money does not want you to know (and why you always get stopped out)

16 Apr 2026 · 1 min

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In this commentary, the speaker explains that retail traders often misinterpret double‑bottom patterns as strong support and buy prematurely. Institutional or "smart" money, however, sees these formations as dense clusters of retail stop‑loss orders. They deliberately sweep these stops out before initiating the genuine price move, using retail traders as exit liquidity. The speaker advises traders to first locate where stop‑loss orders are likely placed and only enter a position after those stops have been cleared, emphasizing that markets are not random but actively hunt for stop orders.

Chapters

When retail traders see a double bottom, they tend to think, oh, strong support, let me buy here. But here's the thing, when smart money sees a double bottom, they think, what a beautiful cluster of stop losses, let me sweep it out before delivering the real move. So if you often find yourself getting stopped out before the real move happens, just ask yourself this one question: where are the stop losses? And then try entering only after the stop losses have been swept and not before, because ultimately the market isn't random, it's always trying to hunt for stops. Once you understand this and you stop being the exit liquidity for the smart money, which is why I say