Stop Loss Order

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A stop-loss order is an instruction to automatically sell a security when its price reaches a specified level, designed to cap your maximum loss on a trade and remove emotion from the exit decision. Properly placed stop losses — based on technical levels like support breaks or a defined percentage loss — are the mechanical backbone of disciplined risk management for every active trader. Articles here explore different types of stop-loss orders, how to set them based on volatility and float characteristics, and common mistakes that cause traders to get stopped out prematurely.