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Essential Risk Management

Stop Loss Calculator

Cut losses with logic, not emotion

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Why pre-calculate your stop loss?

Many investors enter trades without a stop loss, then fall into the trap of hoping prices will recover. Defining your exit in advance removes emotion and lets you react mechanically.

The return needed to recover from a loss is always larger than the loss itself: a 10% loss needs +11.1% to recover; a 20% loss needs +25%; a 50% loss needs +100%. Cutting losses early is the best defense.

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