Stop loss: why and where
The stop loss
Every account that blew up had one thing in common: no stop loss.
Why
- Caps your loss before you enter
- Removes emotion
- One bad trade cannot destroy you
A stop loss caps your loss before you even enter. It removes emotion.
Where
- Beyond the swing high or low
- Beyond the pattern wick
- At least 1 ATR away from entry
Place it beyond the recent swing, beyond the pattern wick, and at least one ATR away so normal noise does not hit it.
Stop loss on a real chart
Example: a stop 1.5x the ATR away from the entry (beyond normal noise) and a target twice that distance - a 1:2 risk to reward.
Learn it, then trade it with signals.
GOFX AI scans gold around the clock and sends setups with entry, stop loss and take profit to your phone - every win and loss published.
GOFX AI scans gold around the clock and sends setups with entry, stop loss and take profit to your phone - every win and loss published.
Trading involves risk. Lessons are for education, not financial advice.