#StopLossStrategies

A stop-loss strategy is a risk management tool used by traders and investors to limit potential losses. By setting a predetermined price at which a position will automatically be sold, investors can protect their capital from significant declines. This strategy is especially useful in volatile markets, helping to remove emotional decision-making. Stop-loss orders can be set as fixed prices or as trailing stops, which adjust with market movement. While it doesn't guarantee profits, it helps preserve funds and manage downside risk. Implementing a disciplined stop-loss strategy is essential for long-term trading success and maintaining a balanced, controlled investment approach.