Stop loss very important for daily trader so they can manage their risk and did not lose all tgeir money in one trade. They also usualy did not hold or doing swing trade. Time is very important for daily trader thats why they use stop lost if there are mistake in their prediction.
Or if there's a sudden market swing and dump that they didn't expect. That's why stop loss is a feature that helps everyone to avoid huge losses which have been happening for so many traders. They're forgetting to use this feature so that when their trade goes wrong, they would only have around 1%-5% of losses. And that's the percentage that most of the traders do and sometimes there's also a stop loss of 10%, depending on how much the trader sets it.
- Too big stop loss levels are only for potential projects and have strong recovery after wobbles, usually experienced investors and traders will go in this direction, they know the market is threatening only temporarily, early stop loss will make them lose their ideal price. For surf projects and not too promising, the range of stop loss is as you said, relatively short to minimize risk and besides, we will have more time to arrange and prepare for a period of entry in a wobbly market, this is the advantage of those who know how to stop loss
They really are going to expect a loss because they're using a stop loss. An early stop loss is a good strategy to avoid further losses that may come to them and if it happens to recover that quick, they'll just have to set another plan of recovering the little that they've lost.
It's better to have that stoppage plan at the beginning and lose a small amount rather than waiting for that recovery which they don't know how long it will take. Day traders choose to lose a small amount for stop loss and will just go onto another trade for the recovery and profit.