STOPS MATTER! Here’s Why You Should Never Trade Without It
One of the most common—and costly—mistakes new traders make is skipping stop orders. Whether it’s hesitation, overconfidence, or just not knowing how they work, trading without a stop is like driving without brakes: you might be fine for a while… until you’re not.
At TraderTV Academy, we constantly emphasize one truth:
A well-placed stop can save your account.
In this article, we’ll cover what stop orders are, why they’re essential in every strategy, how professional traders use them, and how you can avoid common stop-related mistakes.
What Is a Stop Order?
A stop order is a type of order that automatically exits your trade if the price reaches a specific level against you. It’s a built-in protection mechanism to limit losses and manage risk.
There are a few common types:
- Stop-Loss Order: Closes your position at a predefined price if it moves against you.
- Trailing Stop: Moves with the price in your favor, locking in gains while still protecting your downside.
- Stop-Limit: A combination that gives you more control over execution but may not always get filled in fast-moving markets.
Why Trading Without a Stop Is Risky (and Often Fatal)
Markets can move fast — and when they do, emotions take over. Without a predetermined stop, many traders freeze, hoping the market will turn around. Sometimes it does. Most of the time? It doesn’t.
Here’s what happens when you don’t use stops:
- Small losses turn into large ones
- Risk-reward ratios become meaningless
- Account drawdown becomes emotionally and financially destructive
- Discipline begins to erode trade by trade
“Your first job as a trader isn’t to make money—it’s to protect capital. Stop orders help you do exactly that.”
— TraderTV Academy
How Professional Traders Use Stops
Top traders treat stops as non-negotiable. Here’s how they approach them:
1. Pre-Planned and Measured
Stops are placed before the trade even begins, based on technical levels (support, resistance, ATR, structure), not gut feeling.
2. Based on Risk per Trade
Rather than risking arbitrary dollar amounts, traders calculate risk based on a fixed percentage of their account, often 1% or less.
3. Paired with Position Sizing
Stop distance determines how large or small the position size should be. Tighter stops = smaller position, wider stops = lower size.
4. Adjusted as the Trade Evolves
Trailing stops or break-even adjustments can help lock in gains while managing risk dynamically.
Common Mistakes with Stops (and How to Avoid Them)
| Mistake | How to Avoid |
|---|---|
| Setting stops too tight | Give trades room to breathe based on volatility or ATR |
| Moving your stop further away mid-trade | Stick to your original plan unless there’s a valid technical reason |
| Not using stop orders in volatile markets | Use stop-market or trailing-stop to protect against rapid reversals |
| Using stop-limit orders during high volatility | These may not get filled — use with caution |
Practice Stop Discipline at TraderTV Academy
The best way to build confidence in your stop strategy? Practice it before real capital is on the line.
At TraderTV Academy, we give traders access to:
- A realistic simulator to practice stop placement and trade management
- Strategy modules that integrate stops into risk-reward planning
- Live trade reviews that highlight both smart and poor stop usage
- Risk tracking tools to measure consistency and improve over time
Final Takeaway
Trading without a stop is not bold — it’s reckless.
Whether you’re new to the market or refining your edge, a stop order should always be part of your setup. It protects you, keeps you accountable, and allows your strategy to evolve with discipline and control.
STOPS MATTER. Don’t place your next trade without one.
Ready to Learn the Right Way?
Join TraderTV Academy today and start mastering the techniques that professional traders use to protect their capital, manage risk, and stay in the game for the long term.
