Proper way to use stoploss?

<p id="isPasted">A stop loss order is an order to sell a security at a certain price (the stop price) if it falls below a certain price (the trigger price). Stop loss orders are used to limit losses on a trade.</p><p>There are two main ways to use stop loss orders:</p><ol><li><p>To protect profits: If you have a profitable trade, you can set a stop loss order below your current profit level to protect your gains. For example, if you bought a stock for $10 and it is now trading at $12, you could set a stop loss order at $11.50 to protect your $1.50 profit.</p></li><li><p>To limit losses: If you have a losing trade, you can set a stop loss order above your current loss level to limit your losses. For example, if you bought a stock for $10 and it is now trading at $8, you could set a stop loss order at $8.50 to limit your loss to $1.50.</p></li></ol><p>The stop loss order will be executed automatically if the trigger price is reached. For example, if you set a stop loss order at $11.50, your order will be executed if the stock price falls to $11.50 or below.</p><p>It is important to note that stop loss orders are not guaranteed to be executed at the stop price. If the market is moving quickly, the stock price may fall below the stop price before the order can be executed. This is known as slippage.</p><p>The amount of slippage that you experience will depend on the liquidity of the stock and the market conditions. If you are trading a highly liquid stock in a calm market, you are less likely to experience slippage. However, if you are trading a thinly traded stock in a volatile market, you are more likely to experience slippage.</p>