#StopLossStrategies Effective Stop Loss Strategies in Trading

Stop Loss (SL) is the maximum loss limit that you set before trading. Here are some ways to determine an effective SL:

1. Based on Technical Analysis

- For buy positions, place SL below the nearest support level

- For sell positions, place SL above the nearest resistance level

- Use chart patterns or technical indicators as references

2. Based on Percentage of Capital

- Set SL at 1-3% of total capital per trade

- Example: If the capital is Rp10 million, the maximum SL is Rp100,000-Rp300,000

3. Based on Market Volatility

- Use the ATR (Average True Range) indicator

- Calculate SL using the formula: Entry price ± (ATR x multiplier)

4. Based on Time

- Exit the position if the price does not move according to predictions within a certain timeframe

Important Tips:

- Do not move SL except for break even

- Adjust the lot size according to the distance of SL

- SL is not about right or wrong, but risk management

- Practice discipline in applying SL

Conclusion:

A good Stop Loss is one that can protect your capital without eliminating profit opportunities. Apply SL consistently for more controlled trading.