There was a day in my trading journey that I’ll never forget.
I didn’t just lose money.
I lost something bigger—my confidence.
All because of one mistake:
I placed my stop loss at the wrong level.
Yes, profit is important. But if you can’t control your losses,
You won’t survive in the market long enough to enjoy the profits.
🎯 3 Stop Loss Rules Every Trader Must Follow
After that painful experience, I made a promise to myself—
Never guess your stop loss again.
Let me share the 3 rules that saved me:
🔹 Rule #1: Never place a stop loss blindly
Don’t just "guess" the stop loss.
Use technical levels like support and resistance.
Why?
Because these are the real zones where price reacts.
They give structure to your trade and logic to your exit.
🔹 Rule #2: Know your risk tolerance
This one is a lifesaver.
Never risk more than 1–2% of your capital in a single trade.
Think of it this way:
Even if 5 trades go wrong, your account is still safe.
This is how professional traders survive the game.
🔹 Rule #3: Use ATR in high volatility
When the market is moving too fast or feels unstable,
Use the ATR (Average True Range) indicator.
It tells you the "breathing room" of the market—
So your stop loss is not too tight and not too far.
🔁 Your Turn
Have you ever lost a trade because of poor stop loss placement?
What’s your personal mantra when it comes to placing stops?
Share it with me in the comments.
Let’s learn from each other.
And if you found this helpful, follow Mindful Trading Hub for more such lessons from real trading experiences.
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