The invalidation price

What a stop loss actually is, the sentence every stop has to survive, and the most common way beginners place one instead.

There is a definition hiding behind everything in the last two lessons, and it is worth stating on its own.

The definition

Your stop loss (SL) is your invalidation price. It is the price at which the reason you took the trade no longer exists.

It is not a safety net, and it is not a limit on how much you feel like losing. It is a reading of the chart.

The stop marks where you are proven wrong, not where you would like to stop hurting.

Before you place one, say what that price proves. If you cannot finish the sentence, you have a number, not a stop.

The course is free. The account is only there to save your place and let us tell you when new lessons land.