#StopLossStrategies

Stop-Loss Strategies: Protect Your Profits, Limit Your Losses

Trading without a stop-loss is like driving without brakes—you might be fine for a while, but when things go south, it’s going to hurt.

A stop-loss is a preset level where you exit a trade to prevent further losses. It’s not about fear—it’s about discipline and risk management. Here are a few strategies to consider:

1. Percentage Stop – Exit when a trade drops by a certain percentage (e.g., 5-10%). Simple and effective.

2. Volatility Stop – Use indicators like ATR (Average True Range) to account for natural price swings.

3. Trailing Stop – This follows the price as it moves in your favor, locking in gains while still allowing room to run.

4. Support/Resistance Stop – Set your stop just below key support or above resistance levels for a more technical approach.

The best traders aren't the ones who always win—they’re the ones who know when to cut losses and live to trade another day.