✅ THE RIGHT WAY TO SET A STOP LOSS 🛑📉
1️⃣ Know Your Risk Tolerance 💸
🎯 Decide how much you're willing to lose on a trade — stay within your comfort zone!
2️⃣ Analyze Market Conditions 🔍📊
📈 Check volatility, support & resistance levels before placing stops.
3️⃣ Set a Logical Stop-Loss Level 🧠
📌 Place your SL where your trade idea is invalidated — not just randomly!
4️⃣ Use a Risk-Reward Ratio ⚖️
💰 Ensure your potential profit > potential loss — aim for balance!
▶️ Types of Stop Loss & What They Mean:
1️⃣ Fixed Price Stop Loss 🎯
📍 A stop set at a specific price level — simple and clear!
2️⃣ Trailing Stop Loss 🌀
📈 Moves with the price to lock in profits while minimizing risk.
3️⃣ Percentage-Based Stop Loss 📉
📊 Limits your loss to a fixed % of your entry — great for risk control!
4️⃣ Volatility-Based Stop Loss ⚡
🌪️ Adjusts based on market volatility — gives trades space to breathe.
5️⃣ Time-Based Stop Loss ⏳
🕒 Closes your position after a set time, no matter the price action.
🔐 These strategies are crucial for risk management and protecting your capital! 💼💪