A stop loss may look like just a tool to protect you from big losses, but it has an even bigger advantage that most traders fail to use.
When a stop loss is hit, in most cases (around 90% of the time), it actually gives you a chance to re-enter the market at a better and relatively lower level.
This is where many traders make a psychological mistake. Once their stop loss is hit, they lose the courage to take a second entry. Then, when the market starts to reverse and they see green candles, their confidence returns and they enter again. As a result, the stop loss often gets hit again, trapping the trader in the same psychological loop.
The real difference in professional trading is this: you don’t see a stop loss as a failure. You treat it as information — a clue to a better entry point. You then act on your pre-defined plan with proper timing and confidence.$BTC $
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