Glossary / Price action

Stop-loss (stop)

An educational concept. Not a signal, not a strategy, and not a trade Josh has taken.

A flowing ice-blue glass ribbon rising and dipping through empty space, an unlabeled picture of price in motion.
Illustration of the idea, not a market chart and not a result.

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.