"Stop-loss is apparently a means to avoid a big loss, but it has an even greater benefit that most people fail to utilize. When a stop-loss is hit, it often (in about 90% of cases) provides you with an opportunity for a better and relatively lower entry point.
Most traders make a psychological mistake here. Once the stop-loss is hit, they lose the courage to take a second entry. Then, when the market reverses and the 'greenery' (bullish trend) begins to appear, they finally regain confidence and re-enter the trade. Consequently, the stop-loss often gets hit again at that same spot, trapping the trader in a repetitive psychological loop.
The real difference in professional trading is this: do not view a stop-loss as a failure, but rather as 'information' for a better entry point. Make timely and confident decisions according to your pre-determined plan."
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