Stop-Loss Calculator

Where should your stop go? Pick a method (percent, dollar, or ATR) and get the price plus a plain-English risk read.

Uses & Examples

Three Ways to Set a Stop

The "right" stop-loss method depends on the trade. Percent stops are simple and consistent across the portfolio — risk a flat 5% on every name and you don't think about it. Dollar stops are useful when you've already decided exactly how much you're willing to lose per share (often from a technical level you've identified). ATR-based stops adapt to volatility — a quiet $20 stock and a wild $200 stock get different stops measured in dollars but similar stops measured in noise. Most professional swing traders use ATR or technical-level stops; percent stops are more common for portfolio-style allocators.

Where the Tiers Come From

Very tight (<1%): Market noise will stop you out before the trade has a chance. Reserved for high-conviction breakouts where you want to fail fast.
Tight (1-3%): Common for swing trades on liquid stocks. Tight enough to size up, loose enough to survive a normal day.
Moderate (3-7%): Typical for most retail trend trades. Wide enough to absorb a pullback, tight enough that 1-2% account risk still allows reasonable position size.
Loose (7-15%): You'd better have conviction. Either you're trading on a longer timeframe or you've identified a meaningful technical level that's just far away.
Extreme (>15%): Verify intent. If this is a long-term hold, fine. If this is a swing trade, your position size needs to be tiny to keep account risk reasonable.

Worked Example — ATR Method

Worked Example

Entry: $100 | 14-day ATR: $1.50 | Multiplier: 2x

Risk per share = $1.50 × 2 = $3.00

Stop price = $100 − $3.00 = $97.00

Risk % of entry = $3.00 / $100 = 3.0% (boundary of tight/moderate)

Verdict: Moderate stop, well-sized for a typical swing trade.

With a $10,000 account at 1% risk: max $100 loss / $3 per share = 33 shares.

Common Mistakes

The most common stop-loss mistake isn't placement — it's not actually placing the order. "Mental stops" fail under emotional pressure when the price hits them and your brain invents reasons to wait "just one more candle." Use hard stops at the broker. The second most common mistake is placing the stop at a round number ($95.00, $100.00) where every other retail trader's stop also lives — institutional algos hunt those clusters. Place stops past obvious support, not at it.