Hesitation at the entry: what's behind yours?
The setup arrives, the plan says enter, and the finger freezes. Hesitation has causes: fear of loss, fear of being wrong, past pain at this exact moment. The causes are specific and nameable.
What stops your finger?
- the thought that runs through your head
- where it came from (which past trade)
- how you get yourself to act
The stop-loss guide helps by pre-committing the risk.
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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