// Definition
A stop-loss is an order that closes your trade automatically at a set price, limiting how much you can lose if the market moves against you.
Explained simply
The stop-loss should sit at the price where your trade idea is proven wrong, for example just beyond the support zone or the higher low you are trading from.
Trading without a stop-loss is how small losses turn into account-ending losses. No pattern or setup works every time.
Tip
Place the stop where the idea fails, then size the position so that loss is a small part of your account, not the other way round.
Learn it on a real chart · EP 02Support & Resistance: How to Draw ThemWatch the free lesson →
For education only, not financial advice. Trading is risky and you can lose money.