#StopLossStrategies

A stop-loss order is a trading tool designed to limit potential losses by automatically closing a position when the price reaches a predetermined level. It helps traders manage risk and avoid emotional decision-making during market fluctuations. For example, if you buy a stock at $100 and set a stop-loss at $95, your trade will close if the price drops to $95, preventing further losses. Stop-loss orders are essential for maintaining discipline and protecting capital, especially in volatile markets. They can be customized as trailing stops, which adjust with market movements, or guaranteed stops, ensuring execution at the set level. Let me know if you'd like to explore this further!