Stop loss is also needed in gambling. It's not only applicable in trading but also when we gamble and we're in consecutive losses.
Recovery is what becomes the priority by many gamblers when they're in a lot of losses but that idea also can turn into a bad thing if done wrongly and relied too much on emotions.
I believe the reason behind recovering losses is because the gambler has initially lost more than he can afford to loose. in such situations, emotion will definitely play it part and make the gambler willing to risk more in other to recover his loses which is not the right approach to gamble. Loses are part of the entire system so if a gambler must begin gamble he should first understand that the probability of losing is higher than wining so he can understand the concept of risk management and how to employ it. Gambling is just like life, when you're not guided by any set of rules which is achieved by setting some standards, you may end up realizing how much of time you've wasted so far not following the right direction.
It's part of our nature that we want to recover our losses. And no matter how much the losses were, we all want to take back our losses.
Regardless of how much we've got, we all have that desire to take it even for small amounts.
But we also have an idea that it's going to take a while until we're able to get them but in what return? with stress.