|"More money has been lost via people not using a stop loss than all the other reasons put together"
I don't know exactly who that quote is attributed to but it perfectly sums up the risks of not using a stop loss when trading leveraged products such as spread bets.
Yes, stops will often frustrate you, they frustrate all traders and yes, you'll sometimes place them in the wrong place. But if you don't use them, or some other form of financial damage limitation, it's almost certain at sometime in the future the leverage will get out of control and quickly destroy a significant proportion of your account.
The other advantage of using a stop loss is more subtle - it means you understand that successful trading is first about risk control then making profits.
New traders, myself included when I first started out, often think otherwise convincing ourselves we know best. But they either get busted out quickly or come around to the correct way of thinking......
Stop losses also have a hidden use, and a very useful one at that - they can define exactly how much to trade (per point) on any given trading signal. I go into detail on this topic on later pages.