00:00the most common stop loss mistakes are placing stops at obvious round numbers
00:04or directly below slash above recent swing high slash lows where liquidity pools sit
00:09and sizing stops based on account risk tolerance rather than actual market volatility
00:14traders frequently set stops too tight relative to the assets average true range atr getting
00:21stopped out by normal noise before the trade thesis plays out a stop placed at 0.5 x atr
00:27on a volatile stock or crypto pair can trigger 3-5 x more often than one set at 1.5
00:34-2 x atr
00:36based on typical intraday volatility patterns three recurring error types stand out one fixed
00:42percentage stops eg always two percent below entry ignore that a low volatility utility stock and a
00:49volatile small cap biotech need very different buffers applying one rule to both misprices risk
00:55two stops placed at psychologically obvious levels round numbers exact prior lows get hunted by
01:03algorithmic order flow designed to trigger clustered stop orders before reversing this is more pronounced
01:09in forex and crypto markets with high algo participation than in less liquid small cap
01:14equities three moving stops further away after a loss giving the trade more room rather than accepting
01:20the original invalidation point compounds losses instead of limiting them the correct approach shifts by
01:27context for day trading and fast moving futures or forex stops should reference recent volatility
01:33atr based and be placed beyond noise zones not exact support slash resistance for swing or position
01:41trades held over days to weeks wider stops tied to structural invalidation a broken trend line or moving
01:48average make more sense than tight intraday style stops i don't have current 2025 to 2026 broker
01:55specific slippage statistics so avoid treating any single average slippage percent figure as universal it
02:02varies by asset liquidity and broker execution quality practical takeaway define your stop based on where your
02:09trade thesis is actually invalidated structure slash volatility not on a fixed percentage or emotional
02:16comfort level and never move a stop further from entry once placed finally remember that everything we
02:22discussed today is for educational purposes only and does not constitute financial advice good luck to
02:28everyone and see you in the next video
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