Did you know that retail traders (like you and me) often act as fuel for institutional strategies? Big institutions use our actions to move markets in their favor. At [Your Institute Name], we teach you how to avoid being manipulated in our Best Technical Analysis Course in Jaipur. Let’s understand this with an example.
How Institutions Use Retail Traders
Institutions rely on retail traders for liquidity and market participation. Here’s how they manipulate us:
Example: The Stop-Loss Hunting Strategy
Let’s say ICICI Bank is trading at ₹900, and many retail traders have set stop-loss orders at ₹880. Here’s what institutions do:
- Step 1: Push the Price Down
Institutions start selling ICICI Bank shares to push the price down to ₹880. - Step 2: Trigger Stop-Loss Orders
As the price hits ₹880, retail traders’ stop-loss orders are triggered, creating a flood of sell orders. - Step 3: Buy at Lower Prices
Institutions buy back the shares at ₹880 (or lower) and then push the price up again.
In the end, retail traders lose money, while institutions profit from the price movement.
How to Avoid Being Manipulated
At [Your Institute Name], we teach you how to protect yourself from these strategies:
- Avoid Placing Stop-Losses at Obvious Levels:
Institutions know where most retail traders place their stop-losses. Instead, place them at less obvious levels. - Use Multiple Timeframes:
Analyze the market using multiple timeframes to get a clearer picture of price movements. - Follow Institutional Activity:
Watch for unusual volume spikes or price movements that indicate institutional activity.
Why Learn Market Psychology?
Understanding how institutions manipulate retail traders helps you:
- Avoid falling into their traps.
- Make smarter trading decisions.
- Protect your capital.
In our Best Technical Analysis Course in Jaipur, we teach you how to read the market like a pro.
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