rilo512
New Member
A stop-loss is a risk management tool used in trading and investing. It's essentially a predefined price level at which you decide to sell an asset to limit potential losses. Stop-loss orders help protect your investments from significant downturns and emotional decisions. They are crucial because they help prevent catastrophic losses and enable you to maintain discipline in your trading strategy, ensuring you don't hold onto losing positions for too long. By setting a stop-loss, you can control risk and preserve capital, making it an essential practice for responsible trading and investing.