Some traders avoid using sl thinking that it would limit their profits. But I don’t think it is right to think like that. Trading with a stop loss can help you limit your losses to a great extent.
I know that using a stop loss is a great way of limiting your losses. But what makes me avoid it at times is the reason that it gets triggered even if there is a small price fluctuation. This has wasted my trades several times in the past.
If you give your stop a little room at what point do you know that it's not going to reverse as soon as your order is filled. A stop loss is not going to prevent you from taking a loss, it's going to prevent you from taking a BIG loss.
Yeah, understandably why they are thinking of that, but it is very useful in case you do not want to over extent your losses in trading.
@robindude Then you might be setting a tight stop loss. If you don’t want it to be triggered with small fluctuations, read your charts carefully and place a stop loss slightly below the point from where the price is bouncing back. Another way to solve this problem is by trailing your stop loss.
I scale into trades. So I start small enough that hitting the stop loss doesn't ruin my day. Then I add aggressively as I determine that I am correct, but I never add to a losing position.