#StopLossStrategies are risk management tools used to protect investments by automatically selling an asset when it reaches a certain price, helping to minimize potential losses. When applying this to #DiversifyYourAssets, here are a few effective strategies:

Percentage-Based Stop Loss: Sell an asset if it drops a set percentage (e.g., 5–10%) from the purchase price. Useful across all diversified holdings.

Volatility Stop Loss: Adjust your stop loss based on an asset’s price swings. More volatile assets might need wider stop losses.

Trailing Stop Loss: This moves with the market price. If an asset rises, the stop loss moves up, locking in profits while protecting downside.

Time-Based Exit: Sell after a set period if an asset underperforms, regardless of price.

Portfolio-Level Stop Loss: Set an overall loss threshold (e.g., 10% of total portfolio) to trigger rebalancing or liquidation.

Combining stop loss strategies with diversification helps manage both individual and portfolio-wide risks.