#StopLossStrategies

Stop loss is a risk management strategy used by investors and traders to limit losses on an investment position. It works as an automatic order that is triggered when the price of an asset reaches a certain level, known as the "stop price." When this price is reached, the order is executed, usually resulting in the sale of the asset.

The goal of the stop loss is to protect the investor's capital by avoiding larger losses in situations where the market moves against the held position. For example, if an investor buys shares at R$ 50 and sets a stop loss at R$ 45, the stock will be automatically sold if the price falls to R$ 45, thus limiting the loss to R$ 5 per share.

It is important for investors to set their stop loss levels strategically, considering their risk tolerance and market conditions.