Tom Sosnoff of Tastytrade: Stops don't work; Keep your size small

6 days ago
15

FoxBusiness Charles Payne 18sep2025

To manage risk when trading stocks, a "stop" or stop-loss order limits potential losses by automatically selling when a price drops to a predetermined point.

Also, risk can be managed by only putting a relatively small amount of money into any one trade. The "1% Rule," as an example, says a trader should not risk more than 1% of their total account value on any single trade to protect against significant losses.

Loading comments...