#StopLossStrategies A stop-loss strategy involves setting a price level at which to automatically sell a security to limit potential losses. Here's how it works:

- *Determine Risk Tolerance*: Decide the maximum amount you're willing to lose on a trade.

- *Set Stop-Loss Level*: Based on your risk tolerance, set a stop-loss price level, which can be a fixed price or a percentage below the entry price.

- *Place Stop-Loss Order*: Your broker will automatically sell the security when it reaches the stop-loss price.

Example:

- *Entry Price*: $100

- *Risk Tolerance*: 10%

- *Stop-Loss Level*: $90 (10% below $100)

If the price falls to $90, your stop-loss order is triggered, and your broker sells the security, limiting your loss to $10.

Types of stop-loss strategies:

- *Fixed Price*: Set at a specific price level.

- *Percentage-Based*: Set as a percentage below the entry price.

- *Trailing Stop*: Adjusts dynamically with price movements.

Stop-loss strategies help manage risk and protect investments.