Stop-Loss
Also called: stop, stop order
A predefined price where you'll exit a losing trade to cap the loss — the single most important risk-control tool.
A stop-loss is the level that proves your trade idea wrong. Setting it before you enter — at a logical spot like just below support or a moving average — turns an open-ended risk into a known, fixed one and removes emotion from the exit.
The stop's distance from your entry defines your risk per share, which in turn sets your position size. A stop placed too tight gets shaken out by noise; too wide and the loss is large — anchoring it to structure and volatility (ATR) is the balance.
On StockSetups
StockSetups attaches a structural stop to every setup — placed below the pattern's support with an ATR buffer — so each signal comes with a defined risk, not just an entry.
Related terms
See stop-loss on tonight's board.
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