So, I continued to increase my focus on money management. Let's talk about the science of it. You have to know all of this ahead of time. You don't want to be making decisions while you're attempting to pull the trigger on a trade. Let's break down these concepts.
People seem to be first and foremost interested in where to place their stop-loss.
I think stop placement is the number one common misconception when it comes to trading. People think that the tighter the stop the less they are risking when in reality they often guarantee themselves a loss. People are kidding themselves if they think they can trade a stock like this with such a tight stop. In a case like this they will almost always be guaranteed a loss. The same applies to other markets.