Hawai'i Trading Academy | Trading Coaching & Education

5 Types of Stop Losses and When to Use Each One

Not all stops are created equal. Most traders use one type — the hard stop — and ignore the other four. That’s like owning a toolbox with only a hammer.

Our Risk Management Playbook defines five stop types, each designed for different market conditions and trade setups.

1. Hard Stop

A fixed price level entered at trade entry. Non-negotiable. The platform executes it regardless of your emotions. This is your default — every trade should have one.

When to use: Always. Every single trade. No exceptions.

2. Structural Stop

Placed based on market structure — below support, above resistance, beyond a key level. The logic: if price reaches this level, your thesis is invalidated.

When to use: Mean reversion trades where specific levels define the trade thesis.

3. Trailing Stop

Moves with price as the trade goes in your favor. Locks in profits while giving the trade room to run. We use 3x ATR trails in our breakout strategies.

When to u...

The 5 Emotional Enemies Every Trader Faces (And How to Beat Them)

One of our students texted me last week: “Reid, I know the strategy works. I’ve backtested it. But when I’m live, it’s like a different person takes over.”

He’s not wrong. In our Psychology Playbook, we’ve identified the five emotional enemies that hijack live trading.

Enemy #1: Fear

Fear of loss. Fear of being wrong. Fear of missing out. Fear makes you exit winners too early, skip valid setups, and freeze when you should be acting.

The antidote isn’t courage — it’s confidence in your data. When you’ve backtested 2,052 trades and the expectancy is positive, fear has less room to operate.

Enemy #2: Greed

Greed overrides your pre-planned exits and turns winning trades into losers. The fix: Pre-set targets in the platform. Define your exit before you enter.

Enemy #3: Hope

You’re down on a trade. It’s hit your stop level. But instead of executing, you move the stop and think: “It’ll come back.” Hope is not a trading...

The Drawdown Throttle: How to Auto-Reduce Risk Before You Blow Up

Every blown account has the same autopsy: the trader kept full size during a drawdown.

They knew they were losing. They felt the tilt building. And instead of throttling down, they pressed harder — trying to make it back in one trade. The math was against them before their finger hit the buy button.

At HTA, we built a system that makes throttling automatic. We call it the Drawdown Throttle, and it’s the single most important risk architecture you can install in your trading.

How Does the Drawdown Throttle Work?

It’s a pre-set system of position size reductions tied to drawdown thresholds. No judgment calls. No “I’ll be careful.” The rules trigger automatically based on where your equity sits.

Here’s a simple version:

Level 1 — Down 2% on the day: Cut position size by 50%. You’re still in the game, but with half the exposure.

Level 2 — Down 3% on the day: Stop trading. Pau. Close the platform. You’re done for the ...

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1. Journal

Join us as we explore the realistic challenges and strategies of transitioning from a 9-to-5 job to full-time trading. Whether you're an aspiring trader or looking to refine your trading approach, this podcast aims to equip you with the insights and tools needed to navigate the trading landscape successfully.

1. Motivations for Trading: Discussing common reasons why people want to shift from traditional employment to trading.

2. Financial Preparation: How to financially prepare for the transition, including creating a cushion and understanding income requirements.

3. Emotional and Lifestyle Impact: Exploring the psychological adjustments and lifestyle changes that accompany full-time trading.

4. Risk Management: The importance of managing risks and expectations. Start with understanding position sizing and the 1% rule in the volatile trading market. Not sure where to start? Our free Unveiling Clarity e-book can help you find your path.

5. Continuous Learning: The need for ong

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