The stop-loss strategy is one of the most important tools used by traders and investors to protect their investments from significant losses in financial markets. A stop-loss order is a pre-defined order that allows you to set the maximum loss you are willing to tolerate when trading assets, whether they are stocks, cryptocurrencies, or commodities. The primary benefit of using stop-loss strategies is to provide protection against sudden market changes that could lead to substantial losses. For example, if you have a specific stock and expect its price to rise, but the opposite occurs, you can set a stop-loss level at a certain point, and when it is reached, the stock is automatically sold to minimize losses.

There are several types of stop-loss strategies, such as:

1. Fixed Stop: it is set based on a certain percentage of the current price of the asset.

2. Trailing Stop: it adjusts itself automatically if the price rises in your favor, allowing you to protect your profits while continuing to trade.

3. Time-Based Stop: it is used to determine a specific time period before making a decision about selling. By wisely applying stop-loss strategies, investors can limit losses in volatile markets while maintaining their investment strategies. However, it is essential that these strategies are carefully considered so that they are not triggered in unjustified cases, especially in fast-moving markets.