Part 25 | What is a stop-loss?
A stop-loss is a price you set in advance. Once the price reaches it, your position closes automatically. It’s your loss limit. Trading without a stop-loss is like gambling—a single bad trade can wipe out your entire account.
How to set one:
1. Set your stop-loss before entering a trade, not afterward
2. Place it far enough away that normal price fluctuations won’t trigger it
3. Never move your stop-loss further into loss
Remember: accepting a small loss is the price you pay to avoid a big one.
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A stop-loss is a price you set in advance. Once the price reaches it, your position closes automatically. It’s your loss limit. Trading without a stop-loss is like gambling—a single bad trade can wipe out your entire account.
How to set one:
1. Set your stop-loss before entering a trade, not afterward
2. Place it far enough away that normal price fluctuations won’t trigger it
3. Never move your stop-loss further into loss
Remember: accepting a small loss is the price you pay to avoid a big one.
Follow 👇