A stop loss is trading insurance. You can set the amount of your account you are
willing to lose on a trade by setting a stop loss. This does not mean you will lose
but this much but it protect you in the event the market make some unexpected
moves.
Trading with a stop loss you are using good money management. You are insuring
that you will be around another day to trade.
There are some that say they don't trade with a stop loss. I do not hear of too
many that trade without stop losses. I am guessing that is because they lose
all of their money in a trade gone bad and have to stop trading. They may
even lose their confidence and never trade again.
Summary:Â Always trade with a stop loss as part of a successful trading plan.