Just wondered what peoples view is on where to place a stop? As i want to allow a trade "room to breathe" but dont want to be left exposed. How do you figure out where to put it? Also, i wondered if people just trade one strategy or have a number of strategies they trade? Thanks in advance. YIK
For me, the stops I place are far enough below key support or above key resistance levels so that any push to that level survives the bounce. The market loves to go stop "hunting" and trigger them. Nothing is more frustrating than miscalculating and having your stop get hit just as the market reverses itself in your favor. Happened to me last week and I threw a fit.
My personal philosophy is to set my stop at a point which tells me that my trade isn't going to do what I expected. I basically ask myself "What's the point the market shouldn't be able to get to if I'm right?"
You should place your sl just below to the support/resistance level so when the support/resistane is taken away, you don't lose much pips.