Stop loss strategies are essential for managing risk in trading. A stop loss helps limit potential losses by automatically closing a position when it hits a predetermined price. Common strategies include fixed percentage stop loss, where traders risk a set percentage of their capital; trailing stop loss, which moves with the price to lock in profits; and support/resistance-based stop loss, set around key technical levels. Choosing the right strategy depends on your trading style and risk tolerance. Consistently using stop losses can protect capital, reduce emotional decision-making, and improve long-term trading performance in volatile markets like crypto and stocks.
