Where to place a stop loss is a very difficult decision. Ideally we want one that stops us out the moment the direction of the stock turns or leaves us in if the stock is only doing a retrace before continuing on the direction of the trade.
That is of course impossible.
This video looks at the concept of using higher lows (when long) or lower highs (when short) for a stop loss.
There are many different methods for placing a stop loss, this is but one of them and importantly does not exit at target (albeit one could) but rather only exits when the stop loss is triggered leaving you in the trade for as long as the trend continues.
View the improve your trading series
Meet the Just One Lap team at these free live events
Click here to meet the Just One Lap team at one of our live, free events.