Same move, two entries, two stops. Which one survives?

In this Short:
• Your stop is your exit if you’re wrong, not a number that makes the loss feel small
• Entry A sells the cross with a tiny stop (1.83 points)
• Entry B waits for a bounce to the 20 and a close back below the 9, with its stop above the bounce, about 3x wider (5.36 points)
• Real chart: one spike into the 20 took out stop A for a loss. The same spike was B’s setup, and B reached its target at twice the risk.
• Honest note: in the full small test, neither entry was consistently better (cross entries 0.00R over 63 trades, pullback entries −10.00R over 49)

THE RULE: Put your stop where your idea is wrong, not where it feels small.

EMA Playbook 2.0 · Episode 8 of 10
Next: Episode 9 · Planning the exit

THE TRADING PLAYBOOK
Strategies. Setups. Execution.
We don’t trade tips. We trade a plan.

Education only, not financial advice. The chart is real historical price data, used as an example; the same idea applies to stocks, indices, forex and crypto. A small test on a few charts proves nothing on its own, and trading carries a real risk of loss.