What do experienced traders do when they enter a trade with favourable risk/reward but after some time they see that it doesn’t really unfold the way they imagined it? Lets say I enter a trade where I risk 50 pips with aim to win 100. I did my analytics and I have a story that I believe backs my decision to go for that trade. After some time I’m still in it, it didn’t him my stop/loss, in fact I may be 10 pips good. But the trade is nowhere near I imagined it. It may still go and hit my target but I’m now in pure luck territory, I may have been there from the beginning but at least I had that story that believed in. And that has gone. If I take those 10 pips, I risked 50 for it and it won’t work on a long run.
To me it looks like that the stop/loss is there to protect us when we are wrong from the beginning. We try to trade reversal on 1H chart for example, and it doesn’t happen. It goes opposite way and hits our stop/loss in an hour or two. If it hits that in 10 hours its needlessly lost money, we should have exited that trade long time ago.