Don't Use Stop Loss – The Whale Will Hit It!

In the world of trading, a common piece of advice is to always use a stop loss to limit your risk. But here's the catch—smart money (aka whales) know exactly where retail traders like you place those stop losses. They can manipulate the market just enough to trigger your stop, collect your position, and then move the price in the direction you originally expected.

This tactic is often called a "stop hunt." It’s a dirty trick, but it's part of the game.

If you're trading with tight stop losses, you’re basically putting a target on your back. Whales look for liquidity zones, and your stop loss is part of that liquidity. Once they clear those stops, the real move happens—without you on board.

So what's the alternative?

Use wider mental stops based on structure.

Trust your analysis more than the standard rules.

Understand the market maker behavior instead of blindly following indicators.

Stop losses aren't bad, but if you place them like everyone else, don’t be surprised when whales come hunting.