Trading glossary
Stop Loss
A stop loss is a pre-planned order that closes a trade at a fixed price to limit loss if the market moves against you. It is the core risk management tool in trading: it defines the maximum you can lose on a trade and turns an open position into a bounded risk. Consistent use of stop losses is one of the strongest predictors of long-term survival, and reviewing whether you actually honor your stops is a primary use of a journal. In DuskAnalyst you can record planned versus actual stops and review how often you move or abandon them.
Why it matters for your trading journal: The stop loss is the pre-defined exit that caps risk on every trade, and a missing or moved stop is how small losses become account damage. Journaling stops confirms the exit rule held.
Example: Example: a 20-pip stop on EURUSD with a $10,000 account at 1% risk means the position size is set so the stop loss equals $100.
What is Stop Loss in trading?
A stop loss is a pre-planned order that closes a trade at a fixed price to limit loss if the market moves against you. It is the core risk management tool in trading: it defines the maximum you can lose on a trade and turns an open position into a bounded risk. Consistent use of stop losses is one of the strongest predictors of long-term survival, and reviewing whether you actually honor your stops is a primary use of a journal. In DuskAnalyst you can record planned versus actual stops and review how often you move or abandon them.