An order or rule to exit a losing trade at a planned price. It limits the plan, not the outcome: fills can be worse.
How traders use it: Placed at entry, not later. Moving it further away turns a planned loss into an unplanned one.
Common mistake: Widening the stop as price approaches it.
Related: Stop placement · Slippage · Invalidation
Used in: Risk, invalidation, and the stop
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Concepts only. Education only, not financial advice. No pattern on this site has a published win rate.