Stop Seeing Your Stop-Losses as Losses: Observe What Really Happens Afterwards 💡

It's easy to get frustrated when a stop-loss is triggered, but have you ever stopped to observe what happens next? 🤔 The truth is that stop-losses are not simply losses; they are key liquidity points that the market needs to move.

Ask yourself the following:

Did the price move towards my target after my stop was executed? 🎯

Why did the market go against me just before moving in the direction I expected? 🔄

The answer lies in liquidity taking. The market is always seeking liquidity points, which are precisely the stops of traders. This is not something personal against you; it’s simply how the market works to move the price efficiently.

Understand the process:

1. Stops are market targets 🎯: Before moving significantly in one direction, the market needs to "take" the available liquidity. This translates into triggering the stop-losses that are at key levels.

2. It’s not personal 🤷‍♂️: When your stop-loss is triggered, it’s not because the market is against you. It’s because that level represented a necessary source of liquidity for the price to move towards its next target.

3. Observe what happens next 👀: Instead of seeing a stop-loss as a definitive loss, observe how the market behaves afterwards. Many times, this movement is indicative that the market is ready to head towards your original target.

Change your perspective 🧠:

Instead of getting frustrated, use each stop-loss as a lesson and an opportunity to better understand market dynamics. Understanding that the market is taking liquidity will allow you to better plan your entries and exits, and improve your performance in the long run.

Remember, the market is not against you. It’s fulfilling its function of taking the necessary liquidity to move. If you can anticipate this process, you will be one step closer to trading with a clear mind and a fine-tuned strategy.