Your planned exit when wrong
A stop-loss (SL) closes the trade automatically at a set price to cap loss. It turns an undefined risk into a defined one.
Common placement ideas (not rules)
- Beyond recent swing high/low on your timeframe.
- Beyond support/resistance zone with small buffer.
- Fixed pip distance only if it respects structure (avoid arbitrary stops).
Moving a stop further away to avoid loss usually increases risk and is a common account-killer habit.