For long term investors ‘buy & hold’ is the suitable strategy. Trader find stop-loss technique as handy tool. Predicting the future price on the basis of chart trends is technical analysis. ‘Stop-loss’ is an important ingredient of technical analysis. “If the price fall to 95 from 100, it is susceptible to slide further till 85. So sell it at 95 to reduce your loss” is what it advocates and advises traders. The predicted stop-loss level is 95.
