#StopLossStrategies The best stop loss strategy in trading balances risk management and market volatility. A common approach is the percentage-based stop loss, where traders set a stop at a fixed percentage below (or above for shorts) the entry price, typically 1-2%. Another method is the technical stop loss, placed below support levels or moving averages. Trailing stop losses adjust as price moves favorably, locking in profits. Position sizing is essential—risk only 1-2% of your capital per trade. Avoid setting stops too tight, as normal price fluctuations can trigger them. The key is consistency, discipline, and adjusting stops based on market conditions.
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