$BTC A stop-loss strategy automatically closes a position to limit losses if the price hits a predetermined level. For example, buying Bitcoin at $40,000 with a stop-loss at $36,000 caps the loss at 10%. This removes emotion and enforces discipline. Common methods include:

1. **Fixed Percentage** (e.g., 5-10% below entry).

2. **Support-Level** (below key price floors).

3. **Moving Average** (exiting below 50/200-day MA).

4. **Volatility-Based** (using ATR to adjust for market swings).

5. **Trailing Stop** (locks in profits as price rises).

Avoid overly tight stops or obvious levels to prevent premature exits or stop-hunting. Always risk only 1-2% per trade.