Stop hit, then price reversed? 3 stop-loss mistakes

Your stop gets hit, then price goes exactly your way. Sound familiar?

It's usually not bad luck. It's where you put the stop. Here are three mistakes to fix.

Mistake one: a stop right under an obvious low. That's where everyone puts it.

Look at this gold chart. The obvious low was 4142. This candle dipped to 4139, hit those stops, closed back above, and gold then rallied to 4192.

Fix: give it room. Put your stop below the swing low, plus a buffer of about one normal candle.

Mistake two: a stop that's too tight. Normal up and down noise hits it before your move even starts.

Fix: check how big a normal candle is. Your stop should sit further away than that.

Mistake three: a stop on a round number, like 4100. Lots of orders sit right there.

Fix: go a little past it.

But a wider stop means more risk. So trade a smaller size, and keep the dollar risk the same.

Save this. Below the swing low, plus a buffer. Wider than normal noise. Past round numbers. Smaller size.

Your turn. Where do you usually put your stop? Right on the line, below the swing low, or no stop at all? Comment below.

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