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Quick question on stop placement logic, especially with whipsaws
Hey everyone, still relatively new here. I've been paper trading for a few months now, mostly on $EURUSD, trying to get a handle on actual risk management. I feel like I've got a decent grasp on support/resistance and basic trend lines, but my stops keep getting hit on what often turns out to be a whipsaw before the move I predicted happens. I'm trying to figure out if I'm placing them too tight, or if there's a more nuanced way to think about stop placement that accounts for the choppiness, especially around key levels. Do you guys use a percentage of ATR, or is it more about finding a structural point that makes the trade idea invalid?
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