Managing exits to limit losses and protect capital.
This scope is designed to help you build a practical understanding of Stop Losses & Exits. Lessons move from core definitions to real-world context and common failure points.
Reading in order is recommended, but each lesson stands on its own.
Partial exits are a structured way to reduce position size during a trade, turning some unrealized gains into realized results while leaving a smaller residual position to continue. This article explains how partial exits contribute to risk control, where they fit alongside stop losses, and the common pitfalls to avoid.
An in-depth examination of the risk inherent in trading without predefined exits, explaining why unbounded downside threatens capital preservation and long-term survivability, and how these risks appear across instruments and market conditions. The discussion clarifies misconceptions and frames exit discipline as a risk control, not a forecast.
A rigorous explanation of stop losses in volatile markets, covering their purpose, mechanics, execution choices, placement frameworks, and common pitfalls that affect capital protection and long-term survivability. Practical examples illustrate how volatility changes the stop-loss problem without offering trade recommendations.
A rigorous examination of frequent errors traders make when exiting positions, including stop-loss misuse, behavioral biases, and execution pitfalls. The discussion emphasizes why exit discipline is central to capital protection and long-term survivability without proposing specific trade setups or recommendations.
Stop losses are a widely used risk control tool, but they do not guarantee execution at a chosen price or prevention of large losses. This article examines how stop orders function, where they fail, and why broader risk management is needed for capital protection and long-term survivability.
