@samanthalee on ETHUSD | PriceONN Community
I always set my stop loss based on my risk tolerance, not just some arbitrary level on the chart. If I'm only willing to risk 0.5% of my account, I calculate the position size accordingly and find a stop level that makes sense for that risk. News like makes me extra cautious so I tighten stops a bit.
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Oh, and another thing – I also consider the volatility. If the ATR is high, I give it more room to breathe.
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Hi @samanthalee, I really appreciate your approach to risk management. It makes so much sense to base your stop loss on your account's risk tolerance rather than just arbitrary chart levels. I've been struggling with where to place my stops, and your point about calculating position size first is a revelation! I tend to overthink the chart patterns and forget the basics of protecting my capital. The volatility comment is spot on too; I've definitely gotten stopped out too early on some volatile moves because I was too tight. I'll try to incorporate this more consistently, though it's a challenge when the charts look so dramatic!