Stop loss is a very effective and profitable tool most used by every trader, whether he is a beginner or a professional because there are no harmful effects of stop loss but instead there are many benefits of using it. Stop loss is like a barrier that you set for something to not contain and restrict it from the area.  Let me explain it through an example,  When you are going to trade for 100$ and you know that the price will go up to 170$ and you don't want any loss if the price goes down,  so you can set your stop loss on 100$,  so if the price goes down and reach to that limit it to automatically stop the trading and will save your find from further loss.