#BTCvsMarkets

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 decline in the asset's value.

Traders use this technique to mitigate 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. Stop-loss orders can also be adjusted dynamically (like Trailing Stop) to follow profits while protecting gains.

The primary goal is to achieve a balance between minimizing losses and allowing trades to grow. If used correctly, it enhances financial discipline and protects traders from emotional decisions.