#StopLossStrategies

stop-loss strategy is a crucial risk management tool used in trading and investing to limit potential losses on a position. It involves setting a specific price at which a trade will be automatically closed if the price moves against your initial position.

Here's a breakdown of common stop-loss strategies:

I. Based on Price Action and Technical Analysis:

Fixed Percentage Stop: This is the simplest method. You set your stop-loss at a fixed percentage below your entry price (for long positions) or above your entry price (for short positions).