Many Forex traders are under the impression Forex brokers can’t be trusted these days.   And don’t get me wrong, you should investigate your broker before giving them your money.   And the most common concern is the belief Forex brokers are hunting their stops on purpose.

Forex traders think by placing a stop loss on their trade, the broker knows where it is and will purposely do something to knock them out of the trade.   Sometimes it does feel like the market is out to get you.   You place a trade and your stop loss … and then price immediately reverses direction to take your stop loss out before moving in the intended direction.

Yes, this can have you screaming at your computer.   But you might need to look deeper to find the true culprit.   It is more likely professional traders are taking out your stops and not the brokers.   ( I really don’t think brokers care about our “small” trades ).  Let’s talk about something that makes more sense.

As a matter of fact, you can use this as a Stop Running Setup to get into profitable trades.

Here is a typical stop running scenario.   You, the novice at home trader have identified a good level to SHORT a currency pair.  You place your SHORT trade and place your stop loss above the recent swing high.   And things see to go your way … Until price suddenly reverses and heads directly for your stop loss!

Well, the big traders also identified this area to go SHORT, but they don’t want to jump on a train that is already moving.   Therefore, they push price UP, knowing most people in the trade have their stop losses above the last swing high.   And after that area has been reached, they reverse directions and place the short trade.

This strategy accomplishes a few things.   They enter the short trade at a much better price than they would if they just jumped into the trade in motion.   They also create momentum by taking out the existing stops … knowing those traders are going to jump back into the trade to try to recuperate their loss.   So, the pro trader gets more profit and with more security.

So you see, stop running is much bigger than just you and me.   It is more likely the market makers moving price to take advantage of the small, novice traders.   You should be looking at the big players and not the brokers.

This is just one example of how learning price action Forex trading can give you insight into what the big Forex traders are doing.   They are the ones that move price, after all.   Price on your chart gives you insight into what they are doing and which way they want to trade … information you can use to profit WITH them, instead of lose fighting them.

So, stop looking at your broker as the cause of your stops being taken out.   That is not going to help you make more money trading Forex.   Learn to identify pro trader stop hunting and use it to your advantage.   The next time you see a perfect trade setup that reverses to take out the previous swing high or swing low … join the big traders for more profits faster!

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