Raz Amwal A stop-loss is an order held at your broker that simply says: "if price reaches this level, close my trade immediately." That single line turns loss from an open-ended possibility into a known number — before you ever enter the trade.
Why it is the most important tool in trading
Because markets ask nobody for permission. Surprise news, price gaps and panic moves all travel faster than any human. A stop held at the broker works while you sleep and even if your internet drops, because it lives on the broker’s servers, not your device.
The right way: size from the stop, not the other way round
The common mistake is choosing position size first (enthusiastically) and then attaching a "reasonable" stop. The correct order is reversed: decide where the stop technically belongs, then compute position size so the maximum loss never exceeds a fixed share of your portfolio. In the Raz Amwal methodology that share is 2% — on a $10,000 portfolio, no trade may lose more than $200.
A worked example
Suppose analysis places the stop 50 pips from entry and your portfolio is $10,000 with a 2% cap ($200). Allowed pip value = 200 ÷ 50 = $4 per pip. That is your position size — derived from allowed risk, not from excitement.
Stop-losses in an automated system
Automation adds one decisive advantage: nobody "moves" the stop under pressure. Nothing destroys accounts faster than widening a stop as price approaches it, hoping for a bounce. A disciplined engine registers the stop before entry and only ever moves it in your favor — exactly what the Raz Amwal engine does on every trade.
Bottom line: a stop-loss is not an admission of weakness; it is the known price you pay to stay in the game. Trading without one is not trading — it is betting.