#StopLossStrategies

A stop-loss is an automatic sell order placed at a specific price below your entry point. Its purpose is to limit your potential loss if the trade moves against you.

Common strategies include setting it:

A fixed percentage below your purchase price (e.g., 5%)

Just below a key support level (where price previously stopped falling).

Based on the asset's volatility (wider stop for more volatile assets).

You can also use a "trailing stop" which moves up as the price rises, locking in profits while protecting against downturns. It's a vital risk management tool.