A “Stop Loss” order is something that is mainly used by retail traders, and I don’t think they would be offered to us if someone ( Brokers, Market Makers) were not making a lot of many by our use of them. With that said you have to be smart about their use, here is an example of how retail traders make bad use of stops.
Here we have AUDUSD, with a nice stepping pattern lower, we just finished a step up and looked ready for the next move lower, so you go short on candle “a” with a stop loss just about 0.7300, then we get candle “b” price shoots higher during the day ( likely some news event) and hits your stop loss ( to the exact pip) before heading back lower taking you out of the trade at a loss and missing out on candle “c”
A better use of a stop in this example would place it above 0.7400 then in the case of candle “b” you would have stayed in the trade. If candle “b” had finished the day solid blue and above 0.7300 that would had nullified your trade idea and you could have manually exited the trade without waiting for your stop to be hit.
For my own trading I use mental stops , I but a red line on my chart and if the daily price closes Above/Below that red line then I will exit the trade, that way interday news events are not going to take me out of a trade. My risk is limited through position size