#StopLossStrategies are essential risk management tools that help traders limit potential losses. They involve setting a predetermined exit point—a specific price at which a losing trade is automatically closed—to avoid emotional decision-making and excessive losses. Common types include basic percentage stop orders, where a trader specifies a loss threshold (e.g., 2% or 5%), and trailing stops, which adjust as the market moves favorably. These strategies work as safeguards during volatile market conditions and promote a disciplined trading approach. By tailoring stop loss levels to specific market dynamics and individual risk tolerance, traders can protect their capital and improve long-term performance.