Stop size depends on volatility and the session being traded.
Pre-market: Stops are usually tighter due to lower liquidity.
AM session: Stops can be wider because of increased volatility and larger swings.
Placement: Stops are set beyond the invalidating swing to ensure the trade thesis is protected.
It’s also important to note that if a stop is too large, the trade may no longer offer a valid risk-to-reward ratio. In these cases, it’s often best to skip the trade rather than force an entry with poor risk parameters.
⚠️ Disclaimer: This information is provided for educational purposes only and does not constitute financial advice. Always assess your own risk tolerance and trading plan before entering any position.