Stop loss is not “pain management”. It’s invalidation.

Most stop losses fail for one reason: they are placed where it feels uncomfortable, not where the idea is wrong.

A better way to think about stops:

1. **Write the idea in one sentence** Example: “Price will hold above X because buyers defended that level.”
2. **Define invalidation** If price breaks X and holds below it, your idea is wrong. That’s invalidation.
3. **Stop goes at invalidation, not at a random number** Your stop is there to protect you from being wrong, not to avoid emotions.
4. **Then position size becomes easy** Big stop = smaller size. Small stop = larger size. The risk stays constant.

Common trap: moving the stop wider because “it will come back”. That turns a controlled loss into an uncontrolled one.