#StopLossStrategies Stop-loss strategies are risk management tools used by traders and investors to limit potential losses. A stop-loss order automatically sells a security when it reaches a predetermined price, preventing further decline. Common strategies include percentage stop-loss (e.g., 5-10% below purchase price), trailing stop-loss (adjusts as price rises), and volatility-based stops (set based on market fluctuations). These strategies help maintain discipline and protect capital, especially in volatile markets. However, poor placement can lead to premature exits. Successful use of stop-loss strategies requires understanding market behavior, setting realistic loss limits, and aligning them with overall trading goals and risk tolerance.