#StopLossStrategies Stop-loss strategies are essential risk management tools used in trading and investing to limit potential losses. By setting a predetermined price point, a stop-loss order automatically triggers when the asset's price drops to that level, helping prevent further losses. Common stop-loss strategies include the fixed stop-loss, where a set dollar amount or percentage is chosen, and the trailing stop-loss, which adjusts dynamically as the asset price moves in the trader's favor. Another method is the volatility-based stop-loss, where the stop level is based on the asset's price fluctuations. These strategies help traders maintain discipline and avoid emotional decision-making.
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