Stop-loss

Protect your positions with a stop-loss
When you have $100 and you loose 50%, you have $50 left.
To turn these $50 into your orginal $100 you must have 100% profit!!!

A stop-loss (or stop-order) is an order designed to limit your loss on a position. It is easy to set-up and very effective.

If you set a stop-loss order for 10% below the price you paid for the stock will limit your loss to 10%. This strategy allows you to determine the maximum loss and preventing emotional decision-making.

It's also a great idea to use a stop order before you leave for holidays or enter a situation in which you will be unable to watch your stocks for an extended period of time.

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