#StopLossStrategies A stop-loss strategy is a risk management tool used by traders and investors to limit potential losses on a trade or investment. Here's how it works:

Basic Idea:

You set a stop-loss order, which automatically sells a security when its price falls to a certain level. This helps you avoid bigger losses if the market moves against your position.

Example:

Let’s say you buy a stock at $100.

You set a stop-loss at $90.

If the price drops to $90, your broker automatically sells the stock to limit your loss to $10 per share.

Types of Stop-Loss Orders:

Fixed Stop-Loss:

Set at a specific price point (e.g., sell at $90 if bought at $100).

Trailing Stop-Loss:

Follows the price as it rises. For example, you set a trailing stop 10% below the highest price. If the price hits a new high of $120, the stop adjusts to $108.

Why Use a Stop-Loss?

Limits emotional decision-making

Protects capital

Locks in profits (with trailing stop-loss)

Helps stick to a trading plan

if you like my post so plz 🙏 like and share and follow 👣me on binance