Stop-loss is the process of cutting off an investment when the loss reaches a predetermined amount in order to avoid the formation of a larger loss. The purpose of this is to limit losses to a small amount in the event of an investment mistake.

An important difference between forex investing and gambling is that the former can limit losses to a certain extent through stop losses while maximizing the rewards of success, in other words, stop losses make it possible to gain large profits for a small price.

Stop loss is both a concept and a plan, but also an operation. Stop-loss concept means that investors must strategically understand the importance of stop-loss in stock market investment, because in the high-risk stock market, the first thing is to survive before talking about further development, the key role of stop-loss is to enable investors to better survive.

Note：

1. All stop losses must be set before entering the market.

2. Stop losses should be combined with trends. There are three types of trends: up, down and consolidation. In the consolidation phase, the probability of the wrongness of a stop loss in a certain range of prices is greater, therefore, the implementation of the stop loss should be combined with the trend.

3. Choose a trading instrument to grasp the stop-loss point.

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