#StopLossStrategies The hashtag **#StopLossStrategies** highlights the importance of using stop-loss orders to protect investments from excessive losses. A well-planned stop-loss strategy helps traders and investors manage risk, lock in profits, and avoid emotional decision-making.
### **Why Use Stop-Loss Strategies?**
1. **Risk Management** – Limits potential losses by automatically exiting a trade at a predefined price.
2. **Emotion Control** – Removes the temptation to "hold and hope" during market downturns.
3. **Profit Protection** – Secures gains by trailing stop-losses as an asset rises.
4. **Discipline** – Enforces a structured trading plan rather than impulsive decisions.
### **Common Stop-Loss Strategies**
#### **1. Fixed Percentage Stop-Loss**
- Set a fixed % drop (e.g., 5-10%) from your entry price.
- **Best for:** Long-term investors & beginners.
#### **2. Support/Resistance Stop-Loss**
- Place stops below key support (for long positions) or above resistance (for shorts).
- **Best for:** Swing traders & technical analysts
