A stop loss is a predetermined exit price below your entry (for a long trade) where you agree to sell and accept the loss rather than hope the stock recovers.
Stop losses exist for one reason: to preserve capital. Without a defined exit point, a small loss can become a catastrophic loss. A 50% loss requires a 100% gain just to break even.
Common stop loss placements: below a recent support level, below the low of the entry candle, a fixed percentage below entry (e.g. 5-8% for swing trades), or below a key moving average.
Many beginners move their stop loss lower when a trade goes against them. This turns a small, planned loss into a much larger, unplanned one. The original stop existed for a reason.
TuraTrade tracks your stop loss prices on each position. When a stock's follow-up data shows the price dropped below your stop, the position shows as having been stopped out.