1. The reason why some people sell when stocks fall is: stop loss! In order to avoid losing more money, the only option is to sell stocks. It is also possible that you have discovered that there is a better stock investment, so you sell this stock and buy the promising stock again.

2. Stop loss is also called "cutting the flesh", which means that when the loss of a certain investment reaches a predetermined amount, the position is liquidated in time to avoid larger losses. Its purpose is to limit losses to a smaller range when investment mistakes occur. An important difference between stock investment and gambling is that the former can limit losses within a certain range through stop loss, and at the same time maximize the rewards for success. In other words, stop loss makes it possible to gain greater benefits at a smaller cost. possible. The countless bloody facts in the stock market show that an unexpected investment mistake can be fatal, but stop loss can help investors avoid danger.