Best Forex Trading Mentors

This is something I learned from Dr. Barry Burns.  (If you haven’t taken his free 5 day email course, it is highly recommended).

Many Forex traders are under the impression they can’t trust their brokers. And while I do recommend due diligance when choosing a Forex broker to use, I think some of the claims aren’t logical.  The most common complaint that confuses me is broker stop hunting.

Traders think if they place a stop loss with their broker, the broker knows where it is and will purposely do something to knock them out of the trade.  The reason many traders think this is because it happens so often. You place a trade and your stop loss… then you watch price come right up to take your stop out before moving in the original direction.

Yes, this is very frustrating.

But I think your anger is directed toward the brokers instead of the traders really responsible.  I don’t think it is the broker hunting your stops… but the big Forex traders.  (After all, most of us are not trading amounts that matter in the big picture… so it is a little egotistical to think the broker cares about our small trade). There is a more logical explaination of what is going on… on you can profit from!

Here is an example of why stop running happens…

You, the non professional 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 reverses direction and takes out your stop!

Well, the professional traders also identified this area to go SHORT, but they don’t want to enter a trade that is already started.  Therefore, they push price UP, knowing where most traders have their stops. Then they go SHORT.

Here is what this accomplishes…

They get into the SHORT trade at a much better price with much more profit potential. Since they know the market wants to go short, they can create momentum by taking out the stops of the traders already in the trade… knowing they are going to jump back in when price falls again. The big traders that move the markets now make more profit, faster. (And you can too… if you get into the same trade when they do!)

I hope you can see that stop running is not really about just you and your broker.  This is what the professional Forex traders are doing to make more money.  I think it is shortsighted to focus on the brokers and more accurate to focus on the professional Forex traders.

I hope you are starting to see how learning price action Forex trading can give you insight into what the big traders are doing.  This is important to know because they are the ones moving price.  Price on your chart gives you insight into what they are doing and which way they want to trade… which you can use to trade WITH the pros, and not against them.

So, stop looking at your broker as the cause of your stops being taken out.  That is unproductive.  Learn to read price action and turn stop hunting by the pros to your advantage. The next time you see a perfect trade setup that reverses to take out the previous swing high or swing low… don’t get mad, get into the trade when the pros do!

Luckily for us, Dr. Barry Burns has been nice enough to do a video explaining this “Stop Running Setup”.  I suggest you watch this because you are going to see this setup over and again.  Are you going to be ready to profit from it when it happens?

Click Here To Watch The Stop Running Setup

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