A classic moment for watching the charts: $SIREN breaks through the 0.035 level.
To the price, a level is just a number. To us, it’s a psychological barrier.
On a more serious note, there are usually plenty of stop-loss orders clustered around key levels. If the price breaks through one, those stops can all be triggered at once, often causing volatility to spike suddenly.
Sizing your position based on where you place your stop-loss is much more reliable than just winging it.
To the price, a level is just a number. To us, it’s a psychological barrier.
On a more serious note, there are usually plenty of stop-loss orders clustered around key levels. If the price breaks through one, those stops can all be triggered at once, often causing volatility to spike suddenly.
Sizing your position based on where you place your stop-loss is much more reliable than just winging it.