Where to put a stop: use structure, not a round number

Mon, 26 Oct 2026 01:45:48 -0400

Most of us pick our first stop the easy way. Say we buy at $50 and put the stop at $48 because two dollars feels sensible. Or we use “5 percent below entry” because someone said so. Then price dips to $47.90, takes us out, and climbs right back to where we expected it to go.

That sting usually is not bad luck. The stop sat where the number looked neat, not where our trade idea stopped making sense. Let’s walk through a calmer way to choose.

Average True Range on Mind Over Ticks

Where to put a stop: use structure, not a round number