Do you visualise your trades before taking them?
Some traders mentally rehearse the trade — the entry, the stop, the loss, the win — before it happens. The rehearsal pre-experiences the emotions so they don't ambush later.
What's your practice?
- whether you visualise and how
- what you rehearse specifically
- whether it changes your execution
The stop-loss guide gives the rehearsal its content.
Background: Where to place a stop-loss: structure, volatility and time stops
A stop-loss belongs where your trade idea is proven wrong, not at a round number of pips. Here are the main methods and the mistakes that trigger stops early.
How far away should a stop-loss be?
Far enough that normal price movement doesn't reach it, at the point where the reason for the trade would be proven wrong. The position size should then be set so that distance costs a fixed share of the account.
Why was my stop-loss hit when the chart didn't reach it?
Charts usually show the bid price, but sell positions are closed at the ask. When the spread widens, the ask can reach a sell stop while the bid line on the chart stays below it.
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