So, we should be careful and try the use stop loss at the appropriate time, not all time is appropriate but most time is appropriate.
Stop loss orders have two biggest help:
- To help investors/ traders automatically implement their stop loss decisions (through stop loss orders) when market turns to very bad.
- To help investors/ traders cut loss when they are offline (sleep, hangout, vacation, whatever).
A bit more explanation for the use case 1:
Without stop loss orders, most of investors/ traders will hesitate to set up and click to activate their orders at the right time. It is hard to identify when is a right time and emotions affect people's decisions too. Hesitation and being affected by emotions will cause losses and missing chances to earn profits, not only cut loss.