#StopLossStrategies
Stop Loss Strategies: Protecting Capital in the Trading World
In the volatile trading world, making profits is not guaranteed. What distinguishes a professional trader from others is mastering risk management, and this is where Stop Loss strategies play a vital role.
✅ What is a "Stop Loss"?
It is a pre-set automatic sell order that is triggered when the asset price reaches a certain level, aimed at limiting potential losses. For example:
You purchased an asset at a price of $100.
You set a "Stop Loss" order at $90.
If the price drops to $90, the sell order will be executed automatically, limiting your loss to a maximum of 10%.