Stop-loss in trading is often promoted as a tool to protect capital, but in reality, it can be an illusion that leads traders to larger losses, especially in volatile markets. When a stop-loss is triggered due to a temporary price movement, it forces the trader to exit the trade at a loss, despite the possibility of a price rebound later. This mechanism can lead to a series of small losses that accumulate and drain the portfolio over time.

Instead of relying on stop-losses, a smart trader can use a strategy of adding to positions, which is a method based on buying additional units of the asset when the price drops by predetermined percentages, known as "averaging down" or "adjusting". For example, a specific amount can be allocated in the portfolio to divide market entry into several stages, instead of entering with a single amount at a specific point.

This strategy allows the investor to reduce the average entry price and achieve a profit faster when the market rebounds, provided that capital is managed wisely and there is no excessive risk-taking. Thus, adding to positions provides better control over the trade, compared to the stop-loss mechanism that may knock out promising trades before they mature.$BTC $PEPE $BNB #SaylorBTCPurchase