Most traders perceive a stop loss as simply a precautionary measure—but it's also an effective strategic weapon. Wondering what is stop loss and how it can be used in your investing strategy? It allows you to computerize your exit on a market decline so that emotions won't interfere. It also requires you to anticipate your entry and exit, instilling discipline into your trades. Whether day trader or long-term investor, learning how stop loss works can transform the way you're dealing with the market.
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