#OrderTypes101

Stop-loss orders are my favorite tool in trading. It serves as a kind of protection against significant losses. When I set a stop-loss, I define a level at which my asset will be automatically sold if the price falls below this mark. This helps minimize losses in case of a sharp price drop.

I often use stop-loss orders when the market becomes unpredictable. This eliminates the emotional aspect of trading, allowing me to act according to a pre-defined plan rather than based on fear or greed. Thanks in part to this tool, I protect my capital from significant losses.

It's important to remember that the stop-loss level should be set at a reasonable distance from the current price to minimize the likelihood of accidental triggering caused by short-term price fluctuations. However, if the situation starts to change and I see the danger of significant losses, the stop-loss can be a great solution to protect my portfolio.