Stop Placement

Placing Stops is the harder skill to develop.

The market is dynamic so it it best to learn where to place a stop based on the price structure and risk/ reward.....not a fixed amount.... also adherence to time frame selection is critical.

Try placing your stop behind a previous support/resistance , break out line.or past consolidation area .... the skill is to determine where the price will least likely return to. Therefore,many times the distance to a previous stop target will show higher risk than the potential reward target..The question to ask your self is if the trade goes that far the wrong way , is that an acceptable loss?

The decisions to take a trade or not, will over time and many trades, determine your long term success. Remember, there are only two things you have control over.
1. Your entry point.
2. The amount you are willing to lose on each trade.