#StopLossStrategies

Stop-Loss Strategy: Protect Your Capital

A stop-loss strategy is essential for managing risk in trading. It involves setting a predetermined price level at which a trade will automatically close to prevent further losses. This helps protect your capital and removes emotional decision-making. For example, if you buy a stock at $100, you might set a stop-loss at $95 to limit your loss to 5%. Always place stop-losses based on technical levels, not emotions. Consistently using stop-loss orders can preserve profits and protect you from major downturns. It’s a simple yet powerful tool every trader should use to trade smarter and safer.