Stop-Loss Orders Can Destroy Wealth. Here's How.
Investors can limit their losses on a falling stock position by putting in an order to sell a specific stock when the price falls to a predetermined level. On the surface, this makes a lot of sense. Unfortunately, using a stop-loss order can also cause investors to miss out on future gains.
On this clip from Motley Fool Live recorded on Dec. 18, 2020, "The Wrap" host Jason Hall and Fool.com contributors Danny Vena and Asit Sharma discussed the pitfalls of the stop-loss strategy.
Source Fool.com
