#StopLossStrategies #StoplossStratagies

Stop-loss strategies are risk management tools used by investors to limit potential losses on investments. A stop-loss order automatically sells a security when it reaches a predetermined price, helping to prevent further decline. For example, if you buy a stock at $50 and set a stop-loss at $45, the stock will be sold if it drops to that price. This protects investors from significant losses during sudden market downturns. There are different types, including fixed stop-loss, trailing stop-loss (which moves with the asset's price), and percentage-based stop-loss. These strategies are especially useful in volatile markets, allowing investors to stick to a disciplined investment plan. While stop-losses help manage risk, they don’t guarantee protection in rapidly falling or illiquid markets.