#StopLossStrategies

One of the most important risk management tools in trading is the use of stop-loss strategies. A stop-loss helps traders protect their capital by automatically closing a trade at a predefined price to limit potential losses. There are different types of stop-losses, such as percentage-based, volatility-based, and technical stop-losses, each suitable for different trading styles. For example, a swing trader may use support and resistance levels to set their stop-losses, while a day trader might prefer tighter, percentage-based limits. No matter your style, always set a stop-loss before entering a trade. Remember, protecting your capital is the first rule of trading.