Optimal stop-loss placement for volatile stocks?

asked by u/ahmed_k · 15d · 1 answers

Been trading $TSLA and $NVDA lately, and my stops keep getting hit prematurely before the actual move I anticipated happens. I'm using a percentage-based stop, usually 1.5% of my capital. But with these movers, that often puts me too close to the noise. For those trading high-volatility names, how do you determine your stop-loss placement without giving back too much on a losing trade, but also without getting whipsawed constantly? Is it more about technical levels, or a different risk calculation entirely?

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  • u/destiny_h· 1 pts· 15d

    For highly volatile stocks, a fixed percentage stop often isn't dynamic enough. Have you considered using an ATR-based stop instead? It adjusts to the stock's recent volatility, which might give you more breathing room while still defining your risk.

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