Also in my own situation, I didn't like that idea of getting to a loss through a stop loss, but my view has changed because it is better to use a stop loss than not use one. If you lose a little part of your trade, you can still carry on with your trade. After all, trading is all about profits and losses. Maintaining this mentality is the key to success. You may want to stop readjusting your stoploss and taking it further because the price could chase you.

The concept of a stop loss is to help you handle losses. While losses are inevitable as there is always a level of risk when trading, at least with a stop loss in place you will be able to exercise some contorl on losses, and if they do occur, you will lose a certain amount which you can handle.

The psychology of stop-loss orders involves managing emotions and discipline in trading. A stop-loss order helps traders limit potential losses by selling a security when it reaches a predetermined price. This tool is essential for mitigating emotional decision-making, such as holding onto losing positions in hopes of a rebound. Setting a stop-loss requires balancing risk tolerance and market volatility; too tight, and it triggers prematurely, too loose, and it fails to protect against significant losses. The psychological benefit is substantial: it provides a safety net, reducing anxiety and allowing traders to stick to their strategies without fear-driven decisions. Successful traders view stop-losses not as failures but as prudent risk management, essential for long-term success.