Wick

Where a stop actually belongs

Risk & Position Sizing

At the point the idea is wrong

A stop-loss belongs at the price where your trade idea is proven wrong: a broken swing point, the far side of an order block, past a sweep's extreme. Never at a random, convenient round number.

Too tight invites noise

A stop that's too tight, sitting inside normal noise, gets triggered by everyday wiggles that have nothing to do with the trade actually being wrong.

Wider needs smaller size

A stop that's too wide just to give it room, without adjusting size down accordingly, turns a normal loss into an oversized one. Width and size are a package deal.

Check yourself

A stop-loss should be placed at…

  1. The price where the trade's core idea is actually invalidated correct
  2. A round number that feels comfortable
  3. Exactly the same distance on every single trade

The stop should mark the exact point where the reasoning behind the trade no longer holds.

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