AlkalineFX

The Problem with Breakeven Trades

Education
FX:GBPUSD   British Pound / U.S. Dollar
The issue with breakeven trading is that when enough people are joining the market at the same place, be it a demand area or an order block.

Many traders like to secure their positions immediately.

This, however, creates liquidity.

Whenever a large group of people move stop losses to the same area, expect that area to be a target for the banks.

In this example, we can see buy orders being activated at an order block, a sudden push to make buyers secure their position, followed by a stop hunt of risk-free trades before continuing to the upside.

Do you ever get caught in situations like this?


Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.