Why I Give Every Setup a Clear Invalidation Point
Before taking a trade, I want to know what price behavior would prove my idea wrong.
Without an invalidation point, I can keep changing my reasoning as the market moves against me.
That makes risk difficult to control.
A clear invalidation level helps me plan the stop and calculate an appropriate position size before entering.
It doesn't guarantee a perfect exit, but it gives me a structured way to respond when the setup fails.
Every trade idea needs a point where I admit it no longer makes sense.