#StopLossStrategies

Stop loss strategies are essential tools for managing risk in trading. A stop loss is an order placed to sell a security when it reaches a certain price, helping limit the trader’s loss on a position. For instance, if you buy a stock at 100 and place a stop loss at 90, it will automatically sell if the price falls to 90. This helps avoid larger losses in case the market moves against you. Different strategies include percentage stop loss, volatility-based stop loss, and trailing stop loss. Implementing the right stop loss strategy can protect your capital and reduce emotional stress.