#RiskRewardRatio

Stop loss strategies

Stop-loss strategies are essential tools for protecting your investments from significant losses. By setting a predetermined exit point, you can limit downside risk and take the emotion out of trading. Common strategies include the fixed percentage stop-loss, which triggers a sell when the asset drops by a specific percent, and the trailing stop-loss, which moves with the price to lock in profits. Stop-losses are especially useful in volatile markets like crypto, where sudden swings are common. Used wisely, they help preserve capital and maintain discipline, making them a must-have in any risk management plan. Always trade with a strategy.