Stop-Loss Orders: Deciding Your Exit Before You Enter

Stop-Loss Orders: Deciding Your Exit Before You Enter | Veqtio

A stop-loss is a pre-set price at which you exit a losing position —
decided before you buy, when you are still objective. Every BUY call
in our Investment Log is
published with its stop level for this reason.

Risk per trade = (Entry − Stop) × Shares
Example. Buy at $100 with a stop at $92: you have
decided the thesis is wrong if the stock falls 8%. With 100 shares your
maximum planned loss is $800 — known in advance.

Why it works

The biggest destroyer of portfolios is not being wrong — everyone is wrong
regularly — it is staying wrong. A stop converts an open-ended loss
into a fixed, survivable cost.

Placement

Place stops below technical support or beyond normal volatility
(e.g. 1.5–2× ATR), never at a round number where everyone else’s stop sits.
Too tight and noise takes you out; too wide and the loss defeats the purpose.

Mental stop or hard order?

A hard order executes without you; a mental stop requires the discipline
to act. If you have ever frozen watching a position fall, use hard orders.

Related terms: P/E Ratio (Price-to-Earnings) · Free Cash Flow (FCF) · Insider Transactions · Institutional Holdings (13F)

This glossary entry is part of Veqtio’s investing reference. Explore our AI-driven stock reports and the transparent Investment Log of every call we’ve made. Not financial advice — see the disclaimer.