The market hunts this type of stop-loss first
Dec 08, 2025 3:31 am
Dear ,
Today is Day 9,
And I want to talk about something that frustrates almost every trader.
Stop-loss getting hit again and again… even when your direction is correct.
This is not your strategy’s fault.
It’s usually because the SL is placed at the wrong location.
So today, let’s fix that with a simple rule.
The truth about stop-losses
The market rarely reverses from a clean, straight point.
It first:
- dips inside the zone
- hunts liquidity
- tests the wick
- triggers weak SLs
- and then moves in the original direction
This is why your SL gets hit even when your analysis is right.
The solution is not a bigger SL.
The solution is a smarter SL.
Let me show you how.
Rule 1: Never place SL at the obvious point
If everyone can see that level,
The market will hunt it.
Example:
If the last swing low is too clean,
Don’t keep your SL exactly on that line.
Place it below the wick,
inside the liquidity area.
This is where big players place theirs.
Rule 2: Your SL should sit beyond the “decision zone”
Every entry has a zone where institutions decide direction
(orderblock, FVG, breaker, support/resistance).
Your SL must sit:
- Below the zone, if you’re buying
- Above the zone, if you’re selling
Not inside the zone.
Not on the border.
But beyond the zone.
This gives the trade breathing room.
Rule 3: Use structure, not emotion
Never set an SL because:
- “It feels safe here”
- “This looks right”
- “I don’t want a big stop-loss”
The market doesn’t care about comfort.
It respects structure.
Your SL must be where the trade is invalidated.
not where you prefer.
Rule 4: Avoid SLs in the middle of ranges
The middle of a range is where most SLs die.
If your SL sits inside noise,
it will get hit easily.
Always place SL:
- below the last Higher Low (for long)
- above the last Lower High (for short)
Simple, clean structure-based protection.
Here’s the simplest SL formula
Buy setup:
SL, below the zone where buyers last defended strongly
Sell setup:
SL, above the zone where sellers last defended strongly
If your SL is inside noise, it will get hunted.
If your SL is outside noise, it will survive.
Practice Time
Open your last 5 losing trades.
Check:
- Did you place SL at an obvious level?
- Was your SL inside the zone instead of below/above it?
- Was it inside a noisy range?
You’ll instantly understand what went wrong.
A good SL doesn’t prevent loss;
It prevents unnecessary loss.
, Tomorrow is Day 10,
our final email in this series.
I’ll share something important:
How to combine everything you learned
and build one clean, simple trading system for yourself.
With Love & Respect,
Samir