Rethinking Stop Losses: Smarter Risk Management Strategies for Traders
Why rigid stop-loss rules can hurt your edge — and alternative ways to manage risk.
Let’s talk stop losses… (hey, no yawning at the back
The textbook says: “Set your stop and forget it.”
Buy at 100, stop at 90. Simple.
And for many traders, that’s fine, clean, mechanical, done.
But risk doesn’t always need to be managed the textbook way…
STOPS FRAMED DIFFERENTLY


In my latest podcast episode, I dig into alternative ways to think about stops.
And yeah, I know I do bang on about this…
But, I see it all the time: traders taking the standard advice, applying it to every setup… and wondering why it fails.
Sure, if a trade is invalid at a clean level, that’s your stop. Easy.
But if your only reason for placing a stop is “I just don’t want to lose more”… that might not be the best approach.
Sometimes the smarter move is saying:
“I’m willing to give this a bit more room, because the odds are in my favour.”
That’s the point.
Stops aren’t just damage control.
They can be tools to frame risk differently… and that shift can open up new ways to build edge.
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