How do you say no to a trade that looks perfect?
The most dangerous trade is the one that looks flawless: it justifies oversized risk, skipped checks and ignored rules. Saying no to an excellent-looking trade is a skill beginners don't practise.
What makes you pass on a good-looking setup?
- the checks you run before any trade
- the setups you've learned to distrust
- a "perfect" trade that went badly and what it taught you
The stop-loss guide starts from the idea that every trade can be wrong.
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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