#DiversifyYourAssets
These are essential tools in the world of trading and investment, 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 most notable strategies: setting a fixed percentage for losses (such as 2-5% of capital), or using technical analysis to identify support and resistance points. Stop-loss orders can also be adjusted dynamically (such as Trailing Stop) to follow profits while protecting gains.
The primary goal is to achieve a balance between reducing losses and allowing trades to grow. Proper use enhances financial discipline and protects traders from emotional decisions.