#StopLossStrategies Stop-Loss Strategy (200 Words)

A stop-loss strategy is a crucial risk management tool used to limit losses in trading. It involves setting a predefined price at which a trade will automatically close if the market moves against you. The primary goal is to protect capital and prevent emotional decision-making during volatile market conditions.

There are several types of stop-loss strategies:

1. Fixed Stop-Loss: A set amount of loss (e.g., $100 or 2% of the account) is determined before entering a trade. It's simple and helps control risk.

2. Percentage-Based Stop: A stop is placed based on a percentage of the trading capital (e.g., risking only 1-2% per trade), which ensures consistent risk across all trades.

3. Technical Stop-Loss: Stops are placed based on chart patterns or technical indicators, such as below a support level or moving average. This aligns with market structure and helps