#StopLossStrategies

One of the most important risk management tools for any trader: the Stop Loss order.

However, using it randomly can be more harmful than beneficial, so we need to understand the strategy, not just the tool.

Here are some smart strategies:

1. Fixed % Stop Loss:

Set a specific loss percentage (e.g., 2-3%) of the capital for each trade.

2. Support and Resistance:

Place the stop loss below support or above resistance directly, based on technical analysis.

3. Trailing Stop:

Protects profits as the price continues to move in your favor, and moves automatically with the trend.

4. Time-based Stop Loss:

If the market does not move according to expectations within a specified time frame, exit the trade.