A stop-loss is designed to limit an investor’s loss on a security position that makes an unfavorable move.
One key advantage of using a stop-loss order is you don’t need to monitor your holdings daily.
This convenience is especially handy when you are on vacation or in a situation that prevents you from watching your stocks for an extended period.
The beauty of the stop-loss order is that it costs nothing to implement. Your regular commission is charged only once the stop-loss price has been reached and the stock must be sold.