#StopLossStrategies

These are essential tools in the world of trading and investing, aimed at protecting capital from significant losses.

These strategies rely on identifying a specific price level at which the trade is automatically closed to avoid further declines in the asset's value.

Traders use this technique to limit risks, especially in volatile markets such as stocks, cryptocurrencies, or forex.

Among the prominent strategies: setting a fixed percentage for loss (such as 2-5% of capital), or using technical analysis to identify support and resistance points. Dynamic stop-loss orders (like Trailing Stop) can also be adjusted to track profits while protecting gains.

The primary goal is to achieve a balance between minimizing losses and allowing trades to grow. Proper use enhances financial discipline and protects traders from emotional decisions.