‘Stop-Loss’ is an advance order designed to limit an investor’s loss in a particular stock. It is generally a price at which the ‘sale order’ gets triggered for a particular stock that is undergoing a downward trend, thereby, protecting the capital from further erosion.
The devaluation of stock may happen because of any reason but the basic idea is to protect your own capital as much as possible. To stay in the market and continue investing. It is a highly recommended risk management technique.
Our app “Cycle” has been designed to advise you on the “Stop-Loss” aspect of risk management.
For every stock that has a BUY signal under any given time frame vis-a-vis Short, medium and long term. This can be used as it is by our users while booking their trades.
Please refer to How to use Cycle tutorials for learning how to make effective use of stop-loss with the help of various signal combinations in short term & long term investing.