<prompt> Human: Why is it a bad idea to:1. buy stocks, 2. set a stop loss just below current value very tiny, -0.01 or -0.01 for example3. Monitor the price closely throughout the day4. Immediately sell either at a reasonable profit 0.5-1 or minor loss -0.015. Repeat next dayWith Robinhood Instant no transaction fees and DWTI stocks, for example. Of course Ill need to space out my transactions, to not get flagged as a day trader.I must be dumbmissing something because it makes sense in my head but nobody ever recommends this method.  <response>: The biggest reason is that a stop loss doesnt work that way. In your mind, you buy a stock for 10.00. You set a stop loss for 9.99. So, your maximum loss is 0.01 per share. This is TOTALLY NOT HOW IT WORKS.Instead, a stop loss says, if the price hits a certain level, sell. So where you are at risk is if you buy a stock for 10.00 with a 9.99 stop loss and the stock ends the day at 10.00. Overnight, they announce earnings and earning suck. The next morning, the stock opens at 9.00 a share. Boom, a big loss.Basically, stocks dont have to pass through every penny - they can go from 10.00 a share to 9.00 a share instantly. And a stop loss doesnt prevent this. 