Stop Loss Placement
A stop placed at a round number of pips protects nothing if that distance sits inside normal price noise. A stop that respects whatever invalidates the trade protects it, even when that turns out wider than a trader would like. What invalidates the idea The stop belongs at the point where the reason for being in the trade stops being true, not at a distance that felt comfortable when the order went in. A breakout trade is invalidated if price falls back below the level it just broke; a pullback entry in an uptrend is invalidated below the swing low the pullback bounced from. Structure decides the location. Comfort doesn’t get a vote. ...