#StopLossStrategies

The stop loss is a fundamental tool in risk management in the financial market. It allows you to set a loss limit for your trades, ensuring that if the price of an asset moves against your position, the sell order is executed automatically.

By using the stop loss, you can protect your investments and minimize losses, bringing more security and control to your trading. In this article, we will explore how this tool can be crucial for a trading strategy.

The stop loss is an order that you set to limit the loss on a trade. It automatically sells the asset if the price reaches a predetermined level, preventing larger losses and helping in risk management.

Its main function is to protect your capital, ensuring that you do not lose more than you are willing to risk.

Technical Stop

The technical stop is based on graphical analyses and support or resistance points. It is adjusted according to market behavior, offering flexibility to adapt to different scenarios.

Fixed Stop

The fixed stop is determined by a specific value or percentage, regardless of market movement. It offers more predictability, as you set a clear limit for your losses before starting the trade.