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A stop loss should not be based on an arbitrary number, or some random amount you're willing to lose.
Rather, it should be based on whether your initial trading idea has been invalidated.
In this video post, I share with you how to place your stoploss using this logical approach.
I use 3 examples:
1) A classical support trade
2) A dynamic resistance trade
3) A head & shoulders pattern trade

I hope you have enjoyed this week’s video post. As always, comments are welcomed and encouraged. Cheers!
Thanks for watching!
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By Stock Chat

where the coffee is hot and so is the chat

27 thoughts on “How to set a stop loss in trading – so you don’t get stopped out unnecessarily”
  1. Avataaar/Circle Created with python_avatars Muhammad Pallipath says:

    Good explanation ….

  2. Avataaar/Circle Created with python_avatars polo says:

    Thanks ryan

  3. Avataaar/Circle Created with python_avatars Osayanmon Oke - Akins says:

    I like your accent, and you are such a good teacher.

  4. Avataaar/Circle Created with python_avatars Pugan Rothchild says:

    This is a great video to teach how to place a stop loss in trading. Thank you.
    The video gave us two points to observe what the market will happen. The first point I want to call it as warning point which calls us where you should notice your trading.
    And the second point I want to call it as the real stop loss which calls us you must jump out the trading whatever you think if the price has touched the point

  5. Avataaar/Circle Created with python_avatars FARZAM DXB says:

    Thank You

  6. Avataaar/Circle Created with python_avatars WasimH says:

    I am having some financial difficulty maintaining my margin. Any advice? It would really be appreciated.

  7. Avataaar/Circle Created with python_avatars Hayley Bonnell says:

    I'm a newbie focussing on trading the NASDAQ which seems to have huge moves and I'm going to be scalping so would this stop loss principle be the same for the NASDAQ? Thanks Rayner

  8. Avataaar/Circle Created with python_avatars Glynis Giddings says:

    I don't get example 2. If you go short at say 739.15, wouldn't your stop loss be above that, e.g. 745 (not 697.3?)? Then add a trailing stop maybe going down the MA, or just above it, if that is possible? What have I mis-understood?

  9. Avataaar/Circle Created with python_avatars RageAgainstTheMachine RageAgainstTheMachine says:

    💯👍🏾

  10. Avataaar/Circle Created with python_avatars Niño Enate says:

    Thank you rayner ,i keeps on learning everytime i watch your video ,and reading your email

  11. Avataaar/Circle Created with python_avatars Limulus Sang says:

    Wow! Thank you! This is exactly what I was looking for! I always find my SL breaking through… Now it makes sense why I failed. I have been just setting it up as "how much am I willing to lose?" Thank you thank you thank you!

  12. Avataaar/Circle Created with python_avatars Emmanuel Iheke says:

    Am new to this got nobody to help but need more videos to watch

  13. Avataaar/Circle Created with python_avatars peshar says:

    why set stop losses you could be losing a lot of money here….real wall street traders don't use this method….look at the markets instead of looking at a graph to predict an outcome is either you will lose or you will win but it is like gambling this method gambling your money on an outcome…some people know and are good but they could be making even more profit than they are…think of the advantages of not using this method….I leave that up to you….every one of these traders using stop loss have losses and they know it the market does not always go there way but they are making their money out of youtube videos so their losses are covered….no one here is wall street trained they are just trained using a graph but you need to use also knowledge and trend etc…to make a quick buck it is ok if that is what you want but it is no one to make you rich as your losses will come in also

  14. Avataaar/Circle Created with python_avatars Gaucho says:

    Hi Rainer I've been watching all your videos, I'm really learning a lot! thanks for doing it ,you're really an awesome guy !!!thanks!!!

  15. Avataaar/Circle Created with python_avatars vijayeendra dinesh says:

    Dude, but it's too big of a loss right. Especially in your head and shoulder pattern example 😐

  16. Avataaar/Circle Created with python_avatars Emperial X says:

    Thank you for Video!!!

  17. Avataaar/Circle Created with python_avatars Yazdan says:

    thos was great! and sparked some fire in my head

    but u have a question
    due to my low balace, i use 15m or 5m time fram
    does this apply to these time frames as well?

  18. Avataaar/Circle Created with python_avatars Artemis says:

    Thank you for your great video!

  19. Avataaar/Circle Created with python_avatars zain noor says:

    i placed my stop loss at 55$ but it was hit 379$ why is that? and what we can do that stop loss hit the right price as i set?

  20. Avataaar/Circle Created with python_avatars ogah solomon says:

    Who else is here in 2021….See how hard work and persistence pays..So happy for you Rayner TEO ❤️

  21. Avataaar/Circle Created with python_avatars I N E C H Charles says:

    Thank you Rayner this is the best

  22. Avataaar/Circle Created with python_avatars Wise Bear says:

    tks Rayner for your help on stop loss. Very clear…

  23. Avataaar/Circle Created with python_avatars Dil Col says:

    You missed one ‘hey’ on the introduction..
    Please redo … Hey hey what’s up my friends

  24. Avataaar/Circle Created with python_avatars Ernest Kawula says:

    Great stuff Rayner, thank you sir. One of these days i might come to Singapore to see you, my child is in Malaysia University.

  25. Avataaar/Circle Created with python_avatars Rajesh Krish says:

    You are awesome. Well explained. Been struggling with SL setup. Do you have a video on how to setup SL for a Cup & Handle or Flag?

  26. Avataaar/Circle Created with python_avatars DUCKY2333 says:

    Thank you for the super useful video again Reyner!

  27. Avataaar/Circle Created with python_avatars CorporateRaider97 says:

    Does this apply to stocks as well?

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