Place the stop loss with ATR
We all know that stop loss is extremely important in trading in order to manage our risk. The question is, where should we place the stop loss? If too tight, it may be triggered by the normal volatility and we can have a loss even though the stock eventually moved as we expected. If too far, the reward/risk could not be favorable enough to take the trade.
In this video, I show you how to use the ATR (Average True Range) indicator to decide where to place the stop loss.