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Answer:
You should always have a stop loss point in mind before entering your trade. The stop loss is there to remind you that your trade idea has been invalidated and it's time to get out!
For example, let's say that you wanted to short at a key resistance level. If price were to go above that resistance point by 50 pips, you might consider the resistance point to be broken. Of course, the amount of pips for a stop loss largely depends on what trading strategy you take.
No matter what though, you should never set your stop loss based on how much you are willing to lose - it should be the other way around! If you desire to have a wider stop loss (because you think it'll give your trade more room to breathe) then you should make your position size smaller. Just keep these things in mind when placing your stop loss.
