In the past, without a 5% daily loss limit money management approach, i have experienced a drawdown of more than 10% in a day. Looking back at my trades, i realised i took on more bad trades whenever i started losing more. I became irrational and I was eager to make quick bucks to increase my equity.
The lesson is to stick to your money management at all times. Some people may risk 2%-3% per trade, which is still fine as long as it is a sound plan.