#StopLossStrategies #StopLossStrategies

Stop-Loss Strategy for Long-Term Investments

🔹 Suggested Strategy:

1. Wider Stop-Loss Range:

Use a 20–30% trailing stop-loss.

Designed to withstand normal market dips while exiting during structural downtrends.

2. Fundamental-Based Triggers:

Instead of just price, consider selling if:

The company’s fundamentals deteriorate (e.g. declining earnings, rising debt).

Industry outlook changes drastically.

3. Periodic Review Instead of Daily Monitoring:

Re-evaluate every quarter or during earnings season.

Less reactive to short-term noise.

4. Trailing Stop-Loss Option:

If a stock rises, a trailing stop moves up with it.

E.g., If you buy at $100 with a 25% trailing stop, and the stock goes to $150, your stop-loss adjusts to $112.50.