Many traders develop the good habit of setting stop-loss orders, which is a routine risk management practice. But interestingly, those well-funded big players in the market happen to treat this as a hunting ground. They have a clear understanding—where are retail traders' stop-loss orders stacked? When the price hits that level and triggers the stop-loss, the chips are released. Conversely, this level often becomes the best entry point for smart money.

So you'll see this kind of movement: sharp price decline → triggers a large number of stop-losses → retail traders are swept out → then a rebound or rise. It may seem like a coincidence, but long-term observation reveals this is a pattern that cannot be ignored. That’s also why some say stop-loss is a double-edged sword—it protects you from extreme losses but also exposes your risk tolerance bottom line, giving opponents an opportunity.