#StopLossStrategies

Stop-loss — your financial shield

#StopLossStrategies

One of the main principles of successful investing is the ability to not lose more than you can afford. And this is where stop-loss comes in — a tool that automatically closes a trade when a specified level of loss is reached.

Why is stop-loss needed?

— Protects capital from significant drawdowns

— Helps maintain discipline

— Removes emotions from trading

— Allows for peaceful sleep at night

Examples of strategies:

— Fixed percentage: closing a position at a loss of 2–5%

— Trailing stop: stop-loss moves along with the price increase

— Technical analysis: stop is set behind the support/resistance level

Professionals lose less not because they are always right, but because they know in advance when to stop.

Do you use stop-loss in your trades?

#Trading #FinancialLiteracy #Investing #RiskManagement