One of the fastest ways to blow up your trading account?
❌ Ignoring stop losses
❌ Placing them randomly
❌ Risking way too much when you shouldn’t
A lot of traders think stop losses are just about “cutting losers” — but they’re way more than that. They’re how you stay in the game.
Here’s what most beginners get wrong… and how to fix it.
💡 A Stop Loss Isn’t Just a Safety Net — It’s a Logic Line
Your stop loss isn’t a personal punishment.
It’s not bad luck.
It’s simply the point where your trade no longer makes sense.
If the market moves beyond your setup’s logic, the trade is invalid. You get out. Period.
No emotion. No revenge trading. Just discipline.
📏 Stop Losses Only Work When Paired with Position Sizing
Here’s the part most beginners really miss:
➡️ It’s not just where your stop goes.
➡️ It’s also how much you’re risking if it gets hit.
You can (and should) risk the same dollar amount on every trade — even if the stop loss is closer or farther away on the chart.
Example:
Trade A has a 2% stop loss
Trade B has a 5% stop loss
Your target risk is $50 per trade
Your position size is smaller on Trade B to keep your dollar risk consistent.
This is called position sizing based on risk — and it’s what keeps you from losing control.
🎯 The Real Power of Risk Per Trade
When you risk a fixed dollar amount per trade:
You trade with confidence
You don’t fear a losing streak
You avoid overleveraging
You gain consistency
This is how professionals think — in terms of risk, not percentages or hopes.
🧠 So, Where Should You Place Your Stop?
There’s no one-size-fits-all answer, but here’s the key:
Your stop should be placed where the trade idea is no longer valid — not based on how much you’re emotionally willing to lose.
That usually means:
Below support (for longs)
Above resistance (for shorts)
Past a structure break or invalidation point
And again — you calculate your position size based on how far that stop is and how much you’re willing to lose (in dollars).
🛠️ Tools That Help
Platforms like Altrady, 3Commas and TradingView (both taught inside the 15 Minutes to Financial Freedom course) allow you to use visual position sizing tools.
You just set:
Entry
Stop
Dollar risk
…and it calculates your size for you.
This takes the guesswork — and the stress — out of the equation.
📘 Want a System That Teaches This Step by Step?
Inside the 15 Minutes to Financial Freedom course, you’ll learn: ✅ How to set stop losses properly
✅ How to use position sizing to risk the same amount each trade
✅ A beginner-friendly system that uses bots, structure, and rules to take the emotion out of trading
👉 Check out the course here → (insert your affiliate link)
