#StopLossStrategies A stop-loss strategy is a risk management tool used by traders and investors to limit potential losses on a trade or investment. It involves setting a specific price level at which an asset will automatically be sold if its market price drops to or below that point. For example, if you buy a stock at $100 and set a stop-loss at $90, the stock will be sold if it falls to $90, limiting your loss to 10%. This strategy helps protect your capital, especially in volatile markets, and removes emotional decision-making from trading. There are different types of stop-loss orders, such as fixed stop-loss, trailing stop-loss (which moves with the price), and percentage-based stop-loss. In forex trading, using stop-loss orders is essential due to high market fluctuations. A well-placed stop-loss ensures you stay disciplined, preserve your capital, and live to trade another day. It's a must-have in any trading plan.
