First up is where you’ll place your stop-loss order for the trade. Stops should not be set at random levels. Indeed, a stop needs to be placed at a logical level, where it will tell you if you’re wrong about the direction of the trade. Also, avoid placing a stop where it could easily be triggered by normal market movements. https://www.cmegroup.com/education/courses/trade-and-risk-management/proper-position-size.html