#StopLossStrategies
Stop-loss strategies are risk management techniques used to limit potential losses in investments. A stop-loss order automatically sells a security when it reaches a predetermined price, helping to minimize losses if the market moves against the investor.
Types of Stop-Loss Strategies:
1. *Fixed Price Stop-Loss*: Sets a specific price level for the stop-loss order.
2. *Percentage-Based Stop-Loss*: Sets a percentage decline from the purchase price or peak value.
3. *Trailing Stop-Loss*: Adjusts the stop-loss price based on the security's price movement.
4. *Volatility-Based Stop-Loss*: Sets the stop-loss level based on the security's volatility.
Benefits:
1. *Risk Management*: Limits potential losses by automatically selling a security when it reaches a predetermined price.
2. *Emotional Discipline*: Helps investors stick to their