๐ Smart Trading Strategies Using Stop-Loss
Stop-loss is one of the most powerful tools in trading. It protects your capital and reduces emotional decision-making. Here are some proven strategies to use it effectively:
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๐น 1. Fixed Stop-Loss Strategy
Set a stop-loss at a fixed percentage (e.g., 2โ5%) below your entry price.
โ๏ธ Easy to use
โ๏ธ Best for beginners
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๐น 2. Support & Resistance Strategy
Place stop-loss below support or above resistance zones.
โ๏ธ Works great with technical analysis
โ๏ธ Used by professional traders
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๐น 3. Trailing Stop-Loss
As price moves up, the stop-loss automatically moves with it.
โ๏ธ Locks profit while trading continues
โ๏ธ Best for trending markets
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๐น 4. Volatility-Based Stop-Loss
Use ATR (Average True Range) or recent swings to define stop-loss.
โ๏ธ Adapts to market volatility
โ๏ธ Useful for scalping & day trading
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๐ง Pro Tip:
A good trader doesnโt just focus on entryโฆ
Risk management is the real strategy!
