In trading, stop-loss is a topic that everyone cannot avoid. For any asset, if the floating loss reaches 10%, you should seriously ask yourself: at this price level, do you want to continue investing more funds? If the answer is negative, then you should decisively exit the market, rather than delaying and hesitating.
Being able to cut losses means that you have already acknowledged that your initial judgment has deviated. Rather than digging yourself deeper into a mistake, it's better to correct it in a timely manner. Stop-loss, in essence, is the most direct tool for correcting errors. Just like when driving and encountering an accident ahead, the correct response is to hit the brakes, not to accelerate forward.
