To limit trading risk, savvy investors use many trading strategies, one of which is a stop-loss order. We like to compare stop-loss orders to bowling. Bear with us here. If you’ve ever been to a bowling alley with kids, you’ve seen “bumpers” on the lanes. The bumpers stop the ball from going off the rails and tanking the poor kid’s score. Stop-loss orders are just like the bumpers — but for investing.
Note: This article originally appeared at Investors Alley.