The stop-loss is a fundamental tool for risk management in any investment strategy, especially in volatile markets such as stocks, forex, or cryptocurrencies. It is a predefined order that automatically closes a position when the price reaches a certain level, which helps to limit losses.

Why is the stop-loss important?

1. Control emotions: during rapid market declines, investors may panic and make impulsive decisions. The stop-loss removes the need to make emotional decisions.

2. Capital protection: One of the main objectives of an investor or trader is to preserve capital. The stop-loss limits the loss on a trade, ensuring that you have the resources to continue trading.

3. Discipline: It helps you maintain a disciplined approach, adhering to your initial strategy without being influenced by hopes of a market reversal 💪👍