Stop losses are set amounts of risk that traders are willing to take on each trade. The stop loss may be in the form of a cash amount or a percentage, but in any case, it limits the trader's exposure to losing money during the trade. While it ensures that we will only lose a certain amount on each trade if it is not a profitable one, not setting a stop loss is a bad idea. Profiting from each trade would be ideal, but it isn't realistic. You can reduce your losses and risks by using a safe stop loss.

Trading success depends on recognizing price movement signals, which is crucial for determining the optimal stop loss. In order to master this skill, you must constantly monitor price movements and trends in order to find out when to enter deals and when to stop losses.

I agree with you on this as stop loss orders can help the trader sort of play it a bit safer. By setting a stop loss order one would be establishing a certain level of risk that he calculates to be bearable for him. As a result losses can be managed much better.

Stop loss orders deserve a place in almost every trading plan because they protect you from unnecessary damage. Markets can move quickly, and even a solid setup can turn against you without warning. A stop loss gives you a predefined exit so emotions don’t take over when the price starts to slip. It also helps you size positions properly since you know the exact risk on each trade. Traders who avoid stop losses often end up holding losing positions far longer than they should, hoping the market will turn around. Using them consistently keeps your capital intact and allows you to stay disciplined through volatile conditions. Over time, this habit supports steady decision-making and helps you survive rough periods.