When the market moves in your favor, a trailing stop-loss order can be helpful. By trailing the stop-loss order, you can lock in a profit or limit your losses to 5% of your total investment. If your stop-loss is hit too soon, you could lose more money than you intended to lose. This type of order also prevents you from holding a losing trade. This type of order helps you minimize your risk of losing more money, as it moves in the same direction as the price of the underlying asset.