#StopLossStrategies
Stop-loss strategies are essential for managing risk in trading. Here are some common approaches [1]:
- *Fixed Price Stop-Loss*: Set a specific price level to limit losses.
- *Percentage-Based Stop-Loss*: Set a percentage of the entry price to limit losses.
- *Moving Average Stop-Loss*: Use a moving average to dynamically adjust the stop-loss level.
- *Volatility-Based Stop-Loss*: Adjust the stop-loss level based on market volatility.
- *Time-Based Stop-Loss*: Close positions after a specific time period.
These strategies help traders [2]:
- *Limit losses*: Reduce potential losses