Risk
A resting order that closes a position at a predetermined price, placed just beyond the level that would invalidate the idea.
Placing it exactly on a swing point invites being taken out by a wick that immediately recovers. A small buffer beyond costs a few points and avoids a whole category of avoidable losses.
A tight stop is not a safer stop — it usually means being stopped out by normal movement while the read was still valid.
Taught in
Where a Stop Actually BelongsRisk Before Anything ElseA stop marks the level that proves the read wrong — not a distance chosen for comfort.
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