** automatic stop losses = trouble **, page-9

Have to disagree there SP and Alpha.

The whole idea behind a stop loss is to decide where to set your stop loss when entering a trade AND STICKING TO IT. Therefore it makes little difference if the stop is trigger yourself manually or automatically.

I agree with the point that at times a stock can get sold down during the day for what appears to be no reason only to recover again but stocks also get sold down for what appears to be no reason and get further hammered latter in the day or the next day when the reason becomes widely known.

To tell the difference between a stock being sold down for no reason or a reason that is not widely known is very difficult though at time it maybe possible.

Yes using an auto stop loss will be of a disadvantage in these rare occassions were thedifference can be told but using auto stop losses also remove any second guessing as to what to do if your stop is hit and removes the need to be constantly watching the market.