Stop-loss strategies are essential for managing risk in trading and investing. Here are some common stop-loss strategies:
Fixed Price Stop-Loss
1. *Percentage-based stop-loss*: Set a stop-loss at a specific percentage (e.g., 5% or 10%) below the purchase price.
2. *Dollar-based stop-loss*: Set a stop-loss at a specific dollar amount (e.g., $5 or $10) below the purchase price.
Trailing Stop-Loss
1. *Percentage-based trailing stop-loss*: Set a trailing stop-loss that moves up or down by a specific percentage (e.g., 5% or 10%) as the stock price moves.
2. *Dollar-based trailing stop-loss*: Set a trailing stop-loss that moves up or down by a specific dollar amount (e.g., $5 or $10) as the stock price moves.
Volatility-Based Stop-Loss
1. *Average true range (ATR) stop-loss*: Set a stop-loss based on the average true range of the stock's price movements.
2. *Bollinger Band stop-loss*: Set a stop-loss based on the Bollinger Bands, which measure volatility.
Time-Based Stop-Loss
1. *Time-based stop-loss*: Set a stop-loss that triggers after a specific period (e.g., 30 days or 60 days) if the stock price doesn't move in the desired direction.
Other Strategies
1. *Moving average stop-loss*: Set a stop-loss based on a moving average (e.g., 50-day or 200-day) of the stock's price.
2. *Support and resistance stop-loss*: Set a stop-loss based on key support and resistance levels.
These are just a few examples of stop-loss strategies. The key is to find a strategy that works for you and your investment goals.
