A stop-loss is where आप admit the trade idea is wrong and exit. Placing it well — at a स्तर the market must break to invalidate your idea — is the difference between a clean small loss and a painful one.
Place stops at invalidation, not at a dollar amount
Your stop belongs where your trade thesis is proven wrong — beyond a सहायता स्तर, a swing उच्च, or a structure point — not at an arbitrary 'I can only lose $X here' distance. Then आप size the position so that distance equals your planned risk. Logic sets the stop; sizing sets the money.
Using ATR for volatility
Average True रेंज (ATR) measures how much a pair typically moves. Placing stops a multiple of ATR away keeps आप from being shaken out by normal noise. In a volatile market आप need wider stops (and smaller size); in a calm market, tighter.
Never trade without one
A trade without a stop-loss is an खोलें-ended bet that can wipe an account on a single news spike. Set the stop at entry, every time. Moving it further away to avoid a loss is the most expensive habit in trading.
Key takeaways
- Place stops where your idea is invalidated, then size to that distance.
- उपयोग करें ATR to set stops beyond normal noise; widen in volatility, tighten in calm.
- Always set a stop at entry; never widen it to avoid taking the loss.