This episode examines the clash between 2 schools of thought. One side argues that stop losses are essential because markets can gap, news can hit without warning and technology can fail at the worst possible moment. The other side argues that visible stops create predictable pools of liquidity that larger players can exploit, especially when traders place them in obvious locations.

Rather than treating stop losses as simply good or bad, this discussion looks at how they function in the real world, where order flow, execution, volatility and psychology all matter.

The core debate

At the centre of this episode is a simple but important question: are stop losses a smart form of protection, or can they become a weakness when the market knows where traders are likely to exit?

That question matters because many tr ...