Start outside the chart
Consider your obligations, time horizon and ability to absorb loss before evaluating an instrument. This guide cannot determine a suitable allocation for you. If the consequences are unclear, seek qualified advice.
Examine total exposure
Several positions may depend on the same underlying risk. Diversification can spread exposure, but does not guarantee protection from a falling market. Review the portfolio, not just the appearance of individual charts.
Understand order limits
A stop order does not guarantee execution at the stop price. A stop-limit order may remain unfilled. Read the rules for the instrument and broker, and consider gaps, liquidity and trading costs when planning.
Write a decision boundary
Before acting, record what would invalidate the idea and when you will review it. An indicator should not override your loss constraints. Practice without real funds first; simulated observations do not establish future results.
Worked example: stop price versus fill price
Suppose an illustrative price gaps from 100 to 90 and triggers a stop at 95. A stop-market order may execute near available market prices, not at 95. A stop-limit with a limit of 94 may remain unfilled when available bids are below 94. The example distinguishes a price constraint from execution certainty; actual broker and venue rules still apply. Costs also change break-even: a purchase of 100 plus a fee of 1, followed by a fixed selling fee of 1, needs sale proceeds of 102 to recover the 101 spent, ignoring taxes and other costs. These are calculations, not guaranteed results.
Official references
Source pages may be in English.