#StopLossStrategies One of the biggest mistakes often made by beginner traders is being overconfident and reluctant to limit losses. However, in the trading world, preserving capital is far more important than merely chasing profit.

A stop loss is a vital risk management tool. By setting a stop loss, you are determining your loss tolerance limit from the start. This can prevent losses from escalating when the market moves beyond predictions. There are many ways to use a stop loss, such as fixed stop loss (based on a certain percentage of capital), trailing stop (which moves with the price), or techniques based on technical analysis such as support and resistance.

This strategy is not about being afraid of losses, but about surviving in the long term. Successful traders are not those who always profit, but those who know when to exit and protect their capital. Disciplining yourself to use a stop loss is a small step that can have a big impact.

Remember, survival is key. Don't let emotions overpower your strategy.