#StopLossStrategies

Stop-loss strategies are risk management tools used by traders to limit potential losses in volatile markets. A stop-loss order automatically sells an asset when it reaches a predetermined price, preventing further loss. Common strategies include fixed stop-loss, where a set percentage (e.g., 5-10%) below the entry price triggers the sale, and trailing stop-loss, which moves with the market price to lock in profits while limiting downside risk. Some traders use support/resistance levels or technical indicators like moving averages to place stop-losses more strategically. Effective stop-loss use helps protect capital, reduce emotional decision-making, and maintain discipline in a trading plan.