Stop loss hunters or stop loss hunters are parties who target stop loss traders to be easily touched. When a trader's position hits a stop loss and closes with a loss, these hunters will make a profit. Traders who are victims of stop loss hunters usually experience events like this:
Incident 1: Amin opened a long position on EUR/USD at the level of 1.3150, and placed a stop loss of 50 pips from the entry at the level of 1.3100. When the price fell to 1.3105, Amin's position was suddenly covered by a stop loss. After tracing, it turns out that at that time the spread widened until it touched the stop loss target. This incident did not happen once or twice, resulting in a huge loss to Amin's account even though he had implemented risk management
Incident 2: Amin opened a buy order for EUR/USD at the price of 1.3150. In considering stop losses, he takes the support of the psychological level 1.3100 as a reference. Shortly after he opened a position, the price turned down and broke through Amin's support. Amin's transaction also lost 50 pips because the price had touched the stop loss. However, the price break did not last long (a false break). After reaching the level of 1.3095, the price rose again to exceed the entry level of Amin. If it is not hit by a stop loss, Amin's long position can definitely end in profit. Just like the previous example, this incident has happened several times.
