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What are the best practices for setting stop-loss orders

Sure! Here are nine different responses to the question about the best practices for setting stop-loss orders:

**Know Your Risk Tolerance**: Before setting a stop-loss, figure out how much you're willing to lose on a trade. This helps you set a stop-loss that aligns with your risk appetite.

**Use Technical Analysis**: Look at support and resistance levels on the chart. Setting your stop-loss just below a support level can give you a better chance of avoiding getting stopped out prematurely.

**Set a Fixed Percentage**: A common approach is to set your stop-loss at a fixed percentage below your entry price, like 5% or 10%. This keeps it simple and helps manage losses.

**Adjust as the Trade Moves**: If your trade starts moving in your favor, consider trailing your stop-loss to lock in profits. This way, you can protect your gains while still giving the trade room to grow.

**Avoid Placing Stops at Round Numbers**: Traders often place stop-loss orders at round numbers (like $50). Avoid this to prevent getting stopped out by market noise.

**Consider Volatility**: If a stock is more volatile, you might want to set your stop-loss a bit further away to avoid being stopped out by normal price fluctuations.

**Use a Time-Based Stop**: Sometimes, it’s helpful to set a stop-loss based on time. For example, if a trade hasn’t moved in your favor after a certain period, it might be time to exit.

**Stick to Your Plan**: Once you set a stop-loss, stick to it! Don’t let emotions get in the way and start moving your stop-loss further away just because you’re hoping for a turnaround.