#StopLossStrategies
Stop-loss strategies are important tools for managing risk when trading. Here are some basic strategies you can use🚧 :
1. Fixed Stop-Loss
This strategy is simple, where you set a specific point for the stop-loss and stick to it. For example, if you buy a stock at $100, you can set the stop-loss at $90 to protect your capital. 💰
2. Trailing Stop-Loss
The stop-loss adjusts with market movements. If the price rises, the stop-loss level also moves to limit losses if the price starts to decline. 📉
3. Percentage Stop-Loss
This strategy relies on setting a specific percentage for loss from the entry price. For example, you can set 5% as the maximum loss. 🔢
4. Support and Resistance Stop-Loss
In this strategy, the stop-loss is set at the support level in the case of buying or at the resistance level in the case of selling. 🛑
Each strategy helps you reduce risks and ensure the preservation of capital in a volatile market.