overnight. It is not good when price moves violently, especially in crypto, often you will not have time to react.
I find this interesting and it looks like an advise never to leave running market over to the next trading day, this is dangerous. Every trading day has it own challenges so never expect total continuation of the previous day. So close your running trade if on profit or you put stop loss if you are losing before the night falls.
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We have scalping and day trading. If you are a scalper or day trader, you have different strategies if you are compared to swing traders. There are some trades you can leave for more than a day. You may have the intention to leave it for some hours but later you lose and decided to leave it until it came to your profit on the next day (I know most traders do high risk trading which can liquidate their trading asset if leaving trades like this longer). But the way some traders open position with high leverage and no averaging may lead to liquidation or high loss of money. I always wonder why most traders talked more about stop lose when not needed for all types of trading strategies.
Every day is new, prepare a fresh set up and see direction of the market because if you leave a running to the next day, you will be emotionally confused to take accurate trading decision.
Stop loss is good, but low leverage, averaging and appropriately making use of increasing leveraging on an opened position without getting beyond 1x or 2x leverage can help without no stop loss, or just with little loss.
We should also know that stop lose has its own disadvantages, but also helpful to some good traders, I agree.
Stop loss has saved a lot of trading accounts, it is a crucial tool in trading and it is being used by traders that are managerial in nature. I have heard many traders arguing that they trade without a stop loss, but most of them often come back to share their regrets.
It is a matter of time, if a stop loss is not used, the account of the trader will always be lost. To some, it takes days, months or even years. A good trader will always use stop loss for protection's sake, it helps in precalculating the traders' risk, and gives the clue on how to balance the risk with a good reward to make good risk management (risk to reward ratio).
What I know is that people that uses stop lose are those with high risk trading, those that trade with higher amount of money and professional enough prefer not to use stop lose because they prefer to begin with a very low leverage. These are the kind of traders that trade with even less than 1x leverage, or not more than 1x. For a trader that trade with high amount of money, starting to trade with 0.25x and not going more than 1x, but increased the money to 1x when he noticed the market would favour him. This would bring the entry price closer to the mark price four times more and a slight correction towards its position might lead to profit or reduced loss. I do not know why people do not talk about this before they should think of using stop loss. Maybe because most traders uses low amount of money to trade and starting trading with over 1x or higher leverage. But the truth is, those that profit more about trading have no option than to increase their trading fund, open position with very low amount first and average from less than 1x to 1x or not more than 2x before thinking about stop loss. Traders have different strategies though.