The Art of Stop-Loss 2026: Risk Control Every Intermediate Trader Must Learn

Why Set a Stop-Loss?

Reasons for Stop-Loss

1. Protect capital -- do not lose more than 20%
2. Maintain purchasing power -- money saved can be reinvested

Stop-Loss Methods

Method 1: Fixed Percentage

For example: exit when down 10%

Method 2: Technical Stop-Loss

For example: exit when breaking below support

Summary

Stop-loss principles:

1. Set in advance
2. Execute when triggered
3. Do not average down