your notion that stop losses limit losses is a fallacy. shows you are just a conventional thinker and convention is not always right.
reason.... you are not getting a stop loss for free. there is a price to pay. a stop loss means you have lost - margin and commission.
here is an intriguing style of reasoning....
a tight stop loss gets hit more often but less price is paid. a wider stop loss gets hit less often but more price is paid. so really both tight and wider stop losses give you the same " protection".
next.... lets extend the wide stop loss to an infinitely wide stop loss, and still you get the same "protection". (hey since tight and wide is the same right ? so lets make the wide really really wide.)
an infinitely wide stop loss is really NO STOP LOSS.
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