A stop loss is a risk management tool that keeps your losing trades small. The point of a stop loss is defensive and to eliminate stop losses from your trading. Here are ten tips for thinking about when placing a stop loss on a trade: 1. Your stop loss should be a part of your trading plan on entry not figured out later. 2. The best time to set a stop loss is before you get emotionally wrapped up in the outcome of a losing trade. 3. A stop loss should be placed at a price level that price shouldn’t go to if the trade is going to work out in your favor. 4. A stop loss should be placed at a key technical level not ... (full story)