This is a terrible idea. What happens is, you get paralyzed after a 10% loss. You become so paralyzed, you do not enter a new trade until you see that the 10% loss could have been made back if you had gone back in. By the time you get back in? You see another 10% loss. The cycle perpetuates itself.
Just a sarcastic remark. It will take more than a 10% loss to keep my stubborn ass at bay. I am one of those poor souls who can't stand the fact of ending the day in red. Must breakeven or lose it all mentality. (Working on it!)
The advice only works if you are managing a large account. If you are trading Intraday it's better to set a mental $ stop loss if you have a smaller account. For example, you could risk losing $ 400 for the day since this could be made up on another day. However, this can be just a mental stop since if you realize what you were doing wrong or for example if you realize you were on the wrong side of the trend or news report, you could then do a better trade.