#StopLossStrategies Common Stop Loss Strategies:
1. Percentage Stop Loss:
Setting a specific percentage (such as 2% or 5%) of the entry price, and when the price drops by that percentage, the stop loss is triggered.
Example:
Entry Price: $100.
Stop Loss Percentage: 2%.
Stop Loss Price: $98.
2. Stop Loss Based on Support and Resistance:
Identifying technical support and resistance levels, and placing the stop loss below the support level (for buying) or above the resistance level (for selling).
Example:
Entry Price: 1.2000.
Support Level: 1.1950.
Stop Loss Price: 1.1940.
3. Trailing Stop Loss
Automatically moving the stop loss as the price moves in your favor, to secure realized profits.
Example:
Entry Price: $50
Trailing Stop Loss: $5
If the price rises to $55, the stop loss moves to $50.