What Is Stop Loss?

Expert opinion: you can determine the size of your stop loss in two ways:
1. By price (based on the price level shown on the chart). As a rule, you should place your stop loss where the chart shifts, i.e. when upward movement is replaced by downward movement and vice versa. Levels of support and resistance can help here. You'll learn more about them in future lessons. Your stop loss should go just after the closest support or resistance level. You set your stop loss at the price (value) you want and enter it in the terminal.
2. It should be based on the amount you're willing to lose on the trade. For example, let's say you've already calculated that you're willing to lose no more than $20 on any given trade. Just enter this amount when you open the trade.Expert opinion: don't set the stop loss too close to the current value. It could be set off by ordinary chart fluctuations. Don't set the stop loss too far away as then there's no point having one at all. If you can't set a stop loss at a moderate distance from the value, just walk away from the trade.Expert opinion: the most experienced traders set a stop loss on every trade. Add this rule to your arsenal.