#StopLossStrategies
Stop loss strategies are essential risk management tools in trading that help limit potential losses. A stop loss order automatically sells a security when its price falls to a predetermined level. There are several types of stop loss strategies, including fixed stop loss, which sets a specific price to exit a trade, and trailing stop loss, which moves with the asset's price to lock in profits while minimizing losses. Traders may also use percentage-based stops, where a trade is exited if the price drops by a certain percentage. Properly placed stop losses protect capital, reduce emotional trading, and allow for disciplined execution. Successful traders often tailor their stop loss strategies based on market volatility, asset type, and personal risk tolerance.
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