Trending Stocks calculates the Stop price based on the most recent volatility in the stock’s price. In addition, a multiplier is applied to the volatility to arrive at a Stop price that will tolerate reasonable price changes thereby allowing you to hold the stock through normal turbulence. The goal is to accept small losses if necessary and avoid large losses if the market takes a downturn. By the way, a Stop Loss Order is usually only in effect for 90 days and you will have to enter a new Stop Loss Order at that time. This will give you an opportunity to raise the price of the Stop Loss to lock in gains. Your broker will notify you when it is about to expire.