Good morning. The stop-loss order was first introduced in the early days of electronic trading to protect traders from big losses, but studies show nearly 80% of retail traders move or cancel them when price gets close.

It’s proof that discipline, not the stop itself, is the real protection.

-Shaun A, Jonathan Kibbler, Jordon Mellor

MARKETS

How’s your favorite today?

Prices supplied by Google Finance as of 4:00am ET - stock prices as of close. Here is what the prices mean.

TRADER INSIGHTS

Your Stop-Loss Isn’t Wrong, It’s Just Predictable

I used to think my stop-loss placement was smart, tight, precise and efficient.

Then I started noticing a pattern: every time I got stopped out, the market turned right after and went exactly where I expected. Sound familiar? It’s not bad luck, it’s predictability.

The truth is, your stop-loss isn’t wrong. It’s just sitting where everyone else’s is. And the market doesn’t move in straight lines, it hunts liquidity before it runs direction.

Here’s what you need to know:

1. The Market Knows Where You Hide

Most traders anchor their stops under clean swing lows or right above obvious highs. It feels safe, structure-based, even. But in reality, those levels glow like neon signs to liquidity algorithms. Market makers sweep those zones not because they hate you, but because that’s where the orders are.

If you’ve ever said, “It stopped me out by one pip,” congratulations, you’re predictable.

2. Emotion vs. Structure

A tight stop looks disciplined, but often it’s driven by fear, fear of losing, fear of giving the trade space. Structure-based stops consider how price moves: wick sweeps, news spikes, session volatility.

If EUR/USD averages 50 pips in London hours, a 10-pip stop isn’t discipline; it’s denial.

3. Hide Where Logic Lives

Before placing a stop, ask: “Where would price need to go to prove me wrong, not just uncomfortable?”

That’s the difference between a protective stop and an emotional one.

Look for areas beyond liquidity sweeps, the zones that, if broken, invalidate your entire setup logic. That’s your safe spot.

4. Survival Is the Real Edge

A single smart stop can save your entire month. You don’t need to be perfect, just harder to liquidate.

Every premature stop-out doesn’t just cost money; it chips away at confidence, leading to revenge trades and broken rules.

My Takeaway

These days, I stop asking, “What if I lose this trade?” and start asking, “What if I placed my stop where others won’t?”

Once you stop being predictable, the market stops punishing you for being right too early.

Why Retail Investors Always Buy at the Top

You buy after CNBC reports the story.
Wall Street bought when Reddit mentions spiked 3,968%.

You buy after "strong earnings."
Wall Street bought when insiders loaded up $31M beforehand.

You buy after "analyst upgrades."
Wall Street bought when Congress filed their positions first.

The pattern is obvious: You get yesterday's news. They get tomorrow's signals.

While you're reading quarterly reports, professionals track Reddit sentiment, Congressional trades, and insider purchases in real-time.

AltIndex monitors the same signals Wall Street uses: 50,000+ Reddit comments daily, every Congressional filing, insider transactions from 500+ companies.

Every week, we send you the stocks showing the strongest signals before they hit mainstream financial media.

And we’re giving you a 7 day free trial of our app, so you can see new stock narratives happening in real time.

Stop being the last to know.

Past performance does not guarantee future results. Investing involves risk including possible loss of principal.

LEARN

Stop missing moves by understanding this one concept!

What if I told you that understanding one simple concept could help you stop chasing markets and start positioning early for the big moves?

No backtesting.
No magic indicators.
Just understanding why currencies move in the first place.

The core concept is this:

Currencies move on interest rate expectations.

That’s it. That’s the secret.

Every big currency trend whether it be EUR/USD, GBP/JPY or AUD/NZD. All of them are driven by how markets expect central banks to act next.

When one country is expected to raise rates, its currency strengthens.
When another is cutting rates, its currency weakens.

The difference between those expectations?
That’s what drives the FX market.

Some proof?

Take a look at the chart of EURNZD:

  • The candlestick chart shows the currency pair.

  • The blue line represents short-term European bond yields (EU02Y).

  • The green line tracks New Zealand short-term yields (NZ02Y).

Since June, European bond yields have been rising, while New Zealand’s have been falling.

That’s the market telling us something before the headlines did.

  • The ECB held interest rates steady at 2.15%.

  • The RBNZ has been cutting from 3.25% down to 2.50%.

So on one side, you’ve got a central bank saying “we’re steady.”
On the other, one saying “we’re easing.”

The result? EURNZD rallied hard.

Not because of RSI or Fibonacci levels but because the rate differential shifted in favor of the Euro.

How You Can Use This

Here’s how to turn this from theory into action:

  1. Track Rate Expectations, Not Just Rate Decisions

    • Watch short-term bond yields (like 2-year government yields).

    • When one country’s yield starts rising relative to another, that’s your early signal.

  2. Pair Strong vs Weak

    • If one central bank is hawkish (talking tough on inflation) and another is dovish (talking about cuts), the trade idea is clear.

    • In this case? EUR strong, NZD weak → EURNZD long bias.

  3. Combine Fundamentals + Technicals

    • Use technicals for timing entries, stops and targets.

    • But let fundamentals tell you what direction you should be trading in.

WATCH

CHART BREAKDOWN OF THE DAY (USD/CAD)

USDCAD is trading near 1.4048, holding firm after breaking above 1.3980. The pair faces resistance around 1.4170, while support sits at 1.3880. Price remains above the 50-day and 200-day SMAs, keeping momentum bullish. A clean break above 1.4170 could target 1.4450, while staying above 1.3980 keeps buyers in control.

DAILY TRADING PSYCHOLOGY NUGGET

❝

“Your mindset is your real trading account.” You can refill capital after a loss, but rebuilding confidence and discipline takes much longer. Protect your mental balance the same way you protect your equity, because both determine how far you’ll go.

TODAY’S MOST TRENDING MARKET NEWS (OCTOBER 21, 2025)

credits: REUTERS/Kim Kyung-Hoon

Global stock markets surged broadly today as optimism grew over easing U.S.–China trade tensions and a wave of strong corporate earnings. Asian equities led the move, with Japan’s Nikkei 225 reaching a record high amid anticipation of a new pro-stimulus government. (source:reuters)

GAMES

Trading Brain Training

❝

I start the rush, the screens all glow,
Traders watch the futures show.
Bells ring loud, the tape begins,
The daily dance of losses and wins.

What Am I?

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