Position Management: The Art of Dynamic Stop-Loss

Stop-loss is not a fixed number but a dynamic risk management tool.

Three methods of dynamic stop-loss:
1) Moving Average Stop-Loss: Exit when the price falls below a key moving average
2) Volatility Stop-Loss: Adjust stop-loss distance based on ATR (Average True Range)
3) Profit Protection Stop-Loss: Move the stop-loss upward after floating profits reach a certain percentage to protect gains.

Key Principles:
Stop-loss should be set at the "point of logical failure," not at arbitrary levels. Avoid placing stop-losses at obvious technical levels, as they are easily "swept" by the market. Dynamic stop-loss allows profits to run while controlling losses.

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