🎯 Why Tight Stops Usually Lose Even When Your Concept Is Appropriate
🎯 The Lesson
You’re taking an ideal setup.
Directional bias is correct.
Development is clear.
Entry is nice.
However the market hits your tiny cease loss, then flies straight into your take revenue.
It wasn’t your technique that failed —
it was your cease placement.
Tight stops kill extra good trades than unhealthy evaluation ever will.
⚙️ Step 1: Tight Stops Ignore Market Noise
Markets breathe.
They spike, wick, pull again, liquidate liquidity zones.
In case your cease is sitting inside this noise, you get taken out each time.
Instance:
A cease loss should sit past the noise, not inside it.
📊 Step 2: Use Volatility-Based mostly Stops, Not “Small Stops”
Use ATR to construct a logical cease:
Cease Loss = ATR × 1.5 or 2
Instance:
-
ATR = 14 pips
-
Cease ≈ 21–28 pips
This retains your cease secure from regular market fluctuations.
Small cease = phantasm of “much less danger.”
Logical cease = actual safety.
🔢 Step 3: Calculate Place Dimension After the Cease — Not Earlier than
Most merchants choose a cease based mostly on the lot dimension they need to use.
Professionals choose the cease first, then calculate the lot dimension.
Instance:
-
Logical cease = 25 pips
-
Danger = 1% of $10,000 = $100
-
Lot dimension = $100 ÷ 25 pips = $4/pip = 0.40 lot
Your cease is right, and your danger is managed.
By no means shrink stops to develop lot dimension.
Shrink lot dimension and preserve the cease logical.
📉 Step 4: Tight Stops Create Dangerous R:R Decisions
In case your cease is simply too tight:
Wider stops with smaller dimension produce higher accuracy and much smoother fairness curves.
💡 Step 5: Validate With Construction
A cease is nice if it’s positioned:
✔️ Past final swing excessive/low
✔️ Under help / above resistance
✔️ Exterior consolidation
✔️ Past liquidity areas
✔️ Beneath/over apparent lure zones
Your cease should align with construction, not needs.
🚀 Takeaway
A decent cease doesn’t cut back danger —
it will increase the likelihood of being incorrect.
A logical cease protects your thought, respects volatility, and offers your commerce room to show itself.
Commerce smaller.
Cease wider.
Develop smoother.
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👉 https://www.mql5.com/en/channels/issam_kassas
