The Stop-Loss: Deciding to Be Wrong on Purpose
The single most useful habit in trading is deciding, in advance, exactly how wrong you're willing to be.
A stop-loss is a predetermined price where you exit a losing position, capping the damage rather than hoping it recovers.
The value of a stop isn't that it's always right - sometimes a stock stops out and then recovers. The value is that it removes an emotional, in-the-moment decision and replaces it with a plan made while you were thinking clearly.
A stop-loss and a Swing setup's Invalidation Level are the same idea wearing different names - both are the honest 'I was wrong, exit' line, decided before the trade, not during it.
Every setup on the Swing Conviction Board already shows its Invalidation level - that's this lesson's concept, already built into the product, not something you have to calculate by hand.
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