Take-profit vs stop-loss
Two preset exits: one locks in a win, one caps a loss. You set both up front.
A stop-loss sells if the stock falls to a price you chose, to limit the loss. A take-profit sells if it rises to a price you chose, to lock in the gain.
Together they define the trade before it starts: how much you are risking, and where you are happy to walk away with a profit.
Why set them early
In the moment, both decisions get harder. A stock that is up feels like it will keep rising, so you hold too long. A stock that is falling feels like it will bounce, so you hold that too. Preset exits take the flinch out of it.
STS attaches a suggested stop-loss and take-profit to each pick as a starting point. They are a frame to think with, not an instruction.
Decide your exit prices before you enter, when you can still think clearly.
Not financial advice · for research and educational purposes only. Nothing here is a recommendation to buy or sell any security. All investing carries risk of loss.