Stop Loss
A stop loss is a predefined price level at which a trade is automatically closed to limit further losses. It is one of the most fundamental risk management tools in trading, protecting capital by ensuring that no single trade can cause disproportionate damage to a portfolio. Without a stop loss, traders are exposed to unlimited downside. Disciplined use of stop losses is what separates systematic traders from emotional ones — knowing your maximum risk before entering a trade eliminates the temptation to hold and hope. Every signal delivered by One-Signal includes a pre-set stop loss level, communicated before the NYSE opening bell. This is central to our philosophy: structure and defined risk over impulsive, uncontrolled exposure. Combined with our sentiment indicators and contrarian approach, the stop loss ensures every trade is risk-managed from the start. Not financial advice. All trading involves risk.