Question about stop targeting

I read in Kathy Lien's book on forex and other sources that London traders take out stops before they start the major trend of the day. I dont understand why stops have to be taken out before the major intraday starts. Is it because the open positions early in the session prevent the "real" intraday trend from happening?
Why not start the real move early in the session and just trigger stops on one side of the market. I say this b/c stop hunting tries to target both long and short. Isnt this a waste of time? Im clueless.

Remember, this is a global market with professionals who are privy to upcomming reports, political situations, pre-dawn trading, etc. In the futures business these traders are known as the "Locals" who provide the liquidity in the market for the off-floor trader. In 4x they are the also known as the "desk dealers". The example you are refering to is "stop running". You have an entry order, or an exit-loss order, outside of intra-day trading ranges, and when the market is thin outside of normal market hours, the bid/ask is run up to/down to "your" stop price. Their intention is usually to scalp this position provided by you taking the other side; not caring what-so-ever the market direction. Your order simply allowed the local a way into the market. Example - If the local scalped a 10 lot trade intra-market against the daily trend, and you were the other side of this trade, AND his profit objective was ONLY 10 PIPs per lot on a standard account, you allowed him a signifigant profit for him to "run" your stop within very short time frames. He exited for this profit while you were left in this trade potentially to set a new exit (negative) price point exit, or lick the wounds of your stop-loss order that was "run",and now 30 min later the market is running in the direction of your ORIGINAL trade.

Please be careful out there. Depending upon who introduces you to trading 4x, or futures for that mater, there are many "secrets" to the business. The retail customer needs to be very informed and confident their trading system before exposing real capital to the market place.

dcline