What is Liquidity — and How the Market Uses It Against You
Most traders think they’re watching the market.
Truth is — the market is watching them.
Where you place your stop loss,
Where you emotionally buy or panic sell…
The market knows.
So, what is liquidity?
Liquidity is simply where most people are ready to buy or sell.
Big players — market makers, institutions —
They need liquidity to execute large orders.
They don’t enter quietly — they trigger your stop loss first.
How does the market use liquidity?
Retail traders buy after a breakout
They place stop loss just below the last swing low
Price dips down, takes those stop losses
And then the real move starts
That’s called a “liquidity grab” or a “stop hunt.”
In simple words:
You enter late — after price breaks out.
Price pulls back, hits your SL, and bounces right after.
And you sit there like,
“Was the market watching me?”
Yes. It was.
The market is built to hunt fear, greed, and impatience.
Here’s the truth:
If you don’t understand liquidity,
You’ll always enter the wrong side of a move.
You’ll keep feeding your balance to the market,
Trade after trade — without knowing why.
So ask yourself —
Is your next trade part of a real setup…
Or just fresh meat for liquidity?
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