Stop-Loss Strategies

Understand the idea

A stop defines where the original trade idea is no longer acceptable. Its distance interacts with position size. A stop order does not guarantee the exact exit price, especially in fast markets or gaps.

A decision to think through

Widening a stop while keeping size unchanged increases planned loss. Recalculate exposure instead of treating the wider line as a harmless adjustment.

Try it through free practice

Practise a structure-based invalidation point, a clear loss budget, and a decision to stop or skip when those constraints do not fit.

• Explain the evidence available before the outcome.
• Read the feedback and identify one change to your process.
• Revisit the decision later and check what you remember.

Your next free learning challenge

Play the free risk-sizing game. Make five decisions, read the explanation after each answer, and try to state the condition in your own words. First-time correct decisions earn skill XP; later reviews check what you remember. You can then apply the idea in a chart round and inspect the replay. All games, levels, written lessons, and feedback are free, with no signup or real money.