If you’re familiar with the stock market, you probably know what a “stop-loss” is. It’s an order whereby your shares are automatically sold if their value drops to a predetermined level. This prevents your losses from becoming even greater if share prices drop further.
It’s a handy tool to set in place when trading on the stock market. It locks in your profits or limits your losses in a down market, and helps preclude financial catastrophe.
But don’t you wish we had a “stop-loss” for real-life problems?