#StopLossStrategies

StopLossStrategies are crucial tools for managing risk and protecting your capital in trading or investing. Here are some popular ones:

1. Percentage-Based Stop Loss

Exit a trade when the price moves against you by a fixed percentage.

Example: 5% stop loss on a stock bought at $100 means you sell if it drops to $95.

2. Volatility-Based Stop Loss

Adjust stop loss based on the asset's volatility (e.g., using ATR – Average True Range).

More volatile assets get wider stops; stable ones get tighter.

3. Trailing Stop Loss

Follows the price as it moves in your favor but stays fixed once the price reverses.

Locks in profits as the trade moves up.

4. Support/Resistance-Based Stop Loss

Set below support levels (for longs) or above resistance (for shorts).

Aligns with key technical analysis levels.

5. Time-Based Stop Loss

Exit if the price doesn’t move as expected within a certain timeframe.

Useful for short-term or intraday strategies.

6. Mental Stop Loss

Not placed with a broker, but kept in mind.

Risk: Slippage, emotions interfering with execution.

Want examples of how to apply one of these in a trade?