Orders and risk
Stop-loss
A stop-loss is a pre-decided price at which you exit a losing trade, so that one wrong call costs a known, limited amount.
A stop-loss is the price at which you accept that the trade is wrong and get out. You fix it before you enter, not after the position goes against you. For a buy trade it sits below the entry; for a sell trade it sits above. The distance between entry and stop-loss is the risk you are taking per unit.
It can live in two places. A stop-loss order sits with your broker and triggers on its own when price reaches the level. A mental stop-loss lives in your head and depends on you clicking the exit. In fast instruments such as Bank Nifty, or crude oil in the evening session, the mental kind tends to fail exactly when it is needed.
In intraday trading the stop-loss matters more than the entry. Positions are often taken on margin, so a small adverse move on the chart becomes a large move in your account. A defined stop-loss lets you calculate quantity beforehand and keeps a single bad trade from undoing a week of careful ones.
The common mistake is moving the stop-loss further away once price gets close to it. That converts a small planned loss into a large unplanned one. The second mistake is placing it at an obvious round number where many other orders sit. Remember too that a stop-loss limits loss in normal trading but cannot protect you from a gap that opens beyond it.
Worked example
A Nifty futures buy with a 40-point stop-loss
Illustrative numbers: you buy Nifty futures at 25,000 with a stop-loss at 24,960. Your risk is 25,000 minus 24,960, which is 40 points per unit. If price falls to 24,960 you exit, and the loss is 40 points multiplied by your quantity, plus costs. If you carry the position overnight and Nifty opens next morning at 24,900, the stop-loss triggers near 24,900 and the loss is about 100 points, not 40.
In WizeBuySell
Every WizeBuySell signal prints a stop-loss alongside the entry and the three targets, once the signal is confirmed on candle close. The level then trails: it moves to entry when T1 is hit and to T1 when T2 is hit. The software only plots the level. Placing the stop-loss order with your broker, and honouring it, is your job, because the software has no order placement.