In the trading world, even professionals can fall victim to market illusions. How many times have we seen a bullish breakout deceiving traders into believing that the price is heading for the top, leading them to enter confidently... only for the price to suddenly collapse and trigger a stop loss?
The same thing happens with famous technical patterns like head and shoulders, which may mislead one into thinking a reversal is occurring, but reality contradicts the pattern and the price continues to rise!
In platforms like MetaTrader or those that rely on Contracts for Difference (CFDs), the problem is greater. Because trading does not happen in the real market, but within the platform itself, the market maker becomes your opponent... and the referee at the same time.
The price you see may not reflect the true global price, but rather the price the platform wants you to see. And sometimes, a slight delay in execution or a slight difference in price can be enough to turn profit into loss.
How do you protect yourself?
Do not rely solely on technical analysis… confirm it with fundamental analysis or real liquidity.
Do not trade during major news events… as the market makers control the market at that time.
Do not make your stop loss exposed and easy to catch.
Use flexible trading plans, and always be ready for scenario changes.
In the end: perception is the key to survival… not everything that appears on the screen is the truth.
