What is a stop loss and where should I place it?

✦

I keep hearing to always use a stop loss. How do I decide where to place it?

#beginner

👍🔥📈12 reactions2 answers

Answer

💡 2 Answers

✅Best Answer

Trading Wolf

Trader · 15 days ago

Place your stop loss at a level where your trade idea is proven wrong — below a swing low for longs, above a swing high for shorts. Not based on how much you are willing to lose.

👍 3

Price Action Pro

Trader · 15 days ago

The most common mistake is placing SL too tight. Give the trade room to breathe. Use ATR (Average True Range) to size stops based on market volatility.

👍 8

What is a stop loss and where should I place it?

💡 2 Answers

✍️ Write Your Answer