✅ RIGHT WAY TO SET A STOP LOSS 🛑:-
1️⃣. Determine your risk tolerance: Decide how much you're willing to lose on a trade.
2️⃣. Analyze market conditions: Consider volatility, support, and resistance levels.
3️⃣. Set a logical stop-loss level: Based on your analysis, set a stop-loss at a price that invalidates your trade idea.
4️⃣. Use a risk-reward ratio: Ensure your potential profit is proportional to your potential loss.
▶️Types of Stop Loss with Definitions:
1️⃣. Fixed Price Stop Loss: A stop-loss order set at a specific price level.
2️⃣. Trailing Stop Loss: A stop-loss order that adjusts automatically based on price movement, maintaining a set distance from the current price.
3️⃣. Percentage-Based Stop Loss: A stop-loss order set as a percentage of the entry price, limiting potential losses to a specific percentage.
4️⃣. Volatility-Based Stop Loss: A stop-loss order that adjusts based on market volatility, giving trades room to breathe during fluctuations.
5️⃣. Time-Based Stop Loss: A stop-loss order that closes positions after a specified time, regardless of price movement.
These types of stop-loss orders can help you manage risk and protect your investments.❗❗
