#StopLossStrategies

Stop Loss Strategies

Stop loss strategies are essential tools in trading that help limit potential losses and protect profits. A stop loss is a pre-set order to sell an asset when it reaches a certain price, minimizing emotional decision-making during market volatility. One common strategy is the fixed stop loss, where a trader sets a specific price level. Another is the trailing stop loss, which moves with the market price, locking in gains as the asset's value increases. Traders also use percentage-based stop loss, risking only a certain percentage of their capital per trade. These strategies help manage risk, especially in unpredictable markets like crypto or forex. Successful traders always define their stop loss before entering a trade to maintain discipline and long-term profitability.