With a wider stop loss, you will not only stay in good trades and not get stopped out before they move in your favor, but you will also give the market a chance to give you a real exit signal rather than being taken out of the trade at an arbitrary point. A trader who puts more time into his or her stop loss placement than their trade entries is likely to be a much more profitable trader than those who just briefly consider stop loss placement. A good rule of thumb regarding risk management and stop loss placement is: When in doubt (whether it’s about a trade entry or where to place a stop or position size) elect for LESS contracts and WIDER STOP.