#StopLossStrategies **Post for #StopLossStrategies**
Understanding stop-loss strategies is crucial for managing risk in trading. A stop-loss order automatically exits a trade when the price reaches a predetermined level, preventing emotional decisions. Common approaches include the *fixed percentage method* (e.g., exiting at a 5% loss) or *volatility-based stops* using indicators like ATR. Traders also use *trailing stops* to lock in profits as prices rise. For instance, setting a 10% trailing stop on a rising stock ensures gains are protected if the trend reverses. Always align your stop-loss with your risk tolerance and market conditions. Remember, a well-placed stop-loss preserves capital and keeps your strategy disciplined. #StopLossStrategies