Maintaining a **#stop-loss ** in trading is **critical** for#LongTermGains
Here's why:
1. #RiskManagementMastery &#capitalpreservation
- A well-placed stop-loss **limits losses** and prevents a single bad trade from wiping out gains.
- Protects capital, ensuring you stay in the game for future opportunities.
- Prevents impulsive decisions driven by fear or greed.
- Traders who ignore stop-losses often hold onto losing trades, hoping for a reversal, which can lead to even bigger losses.
3. #Strategic Consistency#
Helps enforce a **structured trading approach** rather than random exit decisions.
- Ensures that **risk-reward ratios** are maintained consistently across trades.
4.#Optimizing Stop-Loss Placement
- #Technical Stop:#Based on **support/resistance levels, EMA, ATR (Average True Range).
- Percentage Stop: Fixed at **2-3%** below the entry price.
- Trailing Stop: Moves as price progresses to **lock in profits.
Follow important points for less losses & higher profits…..