**The Truth About Stop Losses**

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Stop losses weren't designed to protect your investment; they were created to make you lose money. If you believe setting a stop loss will prevent financial loss, think again. Here's a breakdown.

**Stop Loss Explained Through an Example**

Let's use a hypothetical bad investment, like a dubious coin—we'll call it STRK for illustration. Say you bought 1000 STRK at $2.50 each, totaling $2500. You set a stop loss at $2, thinking you'd only risk losing $500. However, you wake up to find you've lost $1250. What happened?

**How Stop Loss Actually Works**

A stop loss isn't a safety net against losses. It's a trigger for selling. Once the price hits the preset level, in this case, $2, it automatically sells at the market price. This means if the market is falling quickly, your stop loss could execute at a much lower price than you planned, leading to bigger losses than anticipated.$STRK #STRK/USTD