Sun and Moon

Stop loss

An order that closes a position automatically at a price you set in advance.

Its real value is not in preventing a loss but in fixing its size before you enter, while you are still thinking calmly. A stop placed after opening is placed under pressure, and a stop moved every time price approaches it is not a stop. Note too that it does not guarantee the price - a gap can fill it further away than you set.

Size the position from your stop