Why a Stop is there to Make You Money

📌 PASS THE PROP TRADING TIP

What is a Stop For?

We all know that a stop is the only thing that stands between you and financial ruin 💸, and yet we ALL ignore that advice once, twice, a million times over the course of our trading. 🤦‍♂️🤦‍♀️

Why? 🤔

Because most of us don’t understand stops and see them only as a source of pain. 😖

A stop is there for one purpose only.

To. Make. You. Money. 💰💸

That’s right. If you are not making money, you are doing it wrong. ❌

The stop’s only function is to answer the following question: how much room do you need for the trade to hit profit at a bigger expectancy than the stop? 📈

Understand this. In trading, you WILL LOSE. YOU WILL ALWAYS LOSE. The key to winning is to make that loss either much less frequent or just less than your profit. 💹

The point is not to start a religious war about risk-reward ratios but to find a sweet spot for YOU. 🎯

In day trading, a 1-2 risk-reward ratio is just the sweet spot you need if you go for very short profit targets and manage to win 70% or better. 💵

Now here is the amazing thing that happens once you understand the purpose of the stop. You never again lift it. 🚫🔄 You not only accept it but you actually expect it as it all becomes part of your trading plan, just like food spoilage is part of a restaurant’s business plan. 🍽️📉

Of course, you do your best to minimize it, but honestly, most of the time you don’t even think about it because you are focused on what really matters most -- the next good setup. 📊✨

You stop agonizing over every market beat and instead ask the only question that matters -- is my plan working in the current environment? 🌐✅

View your stop as a key part of a profitable trading plan and work on entries -- because trading is timing and if you master that, you will succeed. ⏰🏆