#StopLossStrategies

Stop-loss strategies are vital in trading to minimize losses by automatically triggering sell orders at preset prices. Key methods include:

1. **Fixed Percentage Stops:** Exiting if a set loss threshold (e.g., 5-10%) is hit.

2. **Trailing Stops:** Adjusting exit points upward as prices rise to lock in profits.

3. **Volatility-Based Stops:** Using indicators like Average True Range (ATR) to account for market swings.

4. **Technical Stops:** Placing orders beyond support/resistance levels to avoid false exits.

These strategies enforce discipline, curb emotional decisions, and protect capital. However, overly tight stops may lead to premature exits during normal fluctuations. Balancing risk tolerance, market analysis, and strategic goals ensures effective risk-reward management, fostering long-term portfolio resilience.