The phrase "to avoid further losses" means taking actions or making decisions in order to prevent or stop additional negative outcomes or disadvantages from occurring. Full definition
I would follow the best diets to avoid further loss of body parts not only in the gastrointestinal tract but other organ systems as well. (nutritionfacts.org)
As I mentioned before, stocks usually don't trace out a sudden V - shaped recovery — sure, you'll have realized a loss (to possibly avoid further losses), but you'll probably have another opportunity to buy into the stock (at a price far better than your original purchase)-- dependent, of course, on seeing improving technicals & fundamentals. (wexboy.wordpress.com)
In the past, when bitcoin experienced substantial price drops, novice bitcoin investors often sold their coins to avoid further losses while some exited the market altogether after having concluded that bitcoin is simply too risky for them. (wirexapp.com)