Advantages of Stop Loss Order

• It can prevent the small loss from becoming a disastrously large one.
  
• It safe you from the unexpected news which can come out of the blue and dramatically affect a stock's price.
  
• It saves the individual from mental shock and gives emotional support also.
  
• 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.
  
• It gives the general market direction and investment psychology of the market.
  
• The proper use of Stop Loss Techniques is crucial to preserving your profits.
  
• Safe and secured investment of funds.
  
• It gives the deep knowledge of financial soundness of the stock of different company.
  
• You don't have to monitor on a daily basis how a stock is performing, especially handy when you are on vacation or in a situation that prevents you from watching your stocks for an extended period of time.
  
• It gives the trader greater flexibility that may fit his trading style where adjustments can be made according to changing market conditions. This requires thorough understanding of price action to be able to use this flexibility.