Concepts

Stop-Loss

Also called: stop, stop order

A predefined price where you'll exit a losing trade to cap the loss — the single most important risk-control tool.

entrystop-loss (risk capped)
Schematic of a stop-loss — illustrative geometry, not a live price chart.

A stop-loss is the level that proves your trade idea wrong. Setting it before you enter — at a logical spot like just below support or a moving average — turns an open-ended risk into a known, fixed one and removes emotion from the exit.

The stop's distance from your entry defines your risk per share, which in turn sets your position size. A stop placed too tight gets shaken out by noise; too wide and the loss is large — anchoring it to structure and volatility (ATR) is the balance.

On StockSetups

StockSetups attaches a structural stop to every setup — placed below the pattern's support with an ATR buffer — so each signal comes with a defined risk, not just an entry.

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