#StopLossStrategies

Stop-loss strategies are vital for managing risk in volatile markets. A stop-loss order automatically sells an asset when it hits a predetermined price, limiting potential losses. For example, setting a 10% stop-loss on a $100 stock triggers a sale at $90, protecting capital during sudden downturns. Trailing stop-losses adjust dynamically, locking in profits as prices rise while guarding against reversals. Traders often use technical indicators like moving averages or support levels to refine these triggers. Emotional discipline is key—predefined exits prevent panic-driven decisions. Whether day trading or investing long-term, a well-calibrated stop-loss preserves gains and minimizes downside. Adapt your strategy to market conditions and risk tolerance.