How can I use stop-loss orders to protect my investments

[CassandraChen]

How can I use stop-loss orders to protect my investments

[AilaniBowman]

Sure! Here are three different ways you can use stop-loss orders to protect your investments:

[MelinaMorrow]

**Set a Specific Price Point**: You can set a stop-loss order at a specific price below the current market price of your investment. For example, if you bought a stock at $50, you might set a stop-loss at $45. This way, if the stock drops to that price, it will automatically sell, helping you limit your losses.

[AzariahZavala]

**Percentage-Based Stop-Loss**: Another approach is to use a percentage-based stop-loss. Decide on a percentage that you’re comfortable losing—like 10%—and set your stop-loss accordingly. So if you buy a stock at $100, you’d set a stop-loss at $90. This method helps you stay disciplined and can prevent emotional decision-making.