#StopLossStratigys Stop-loss strategies are crucial risk management tools in trading. They involve setting a predetermined price level at which a position will be automatically closed to limit potential losses. Various methods exist, including fixed percentage stops, volatility-based stops using Average True Range (ATR), and identifying stop levels based on support and resistance or trendlines.

Trailing stops offer flexibility by adjusting the stop price as the market moves favorably. Proper placement, considering market volatility and the asset's behavior, is vital for effectiveness. Stop-losses help protect capital and prevent emotional decision-making, acting as an automated exit point when trades move against expectations.