Some of my set ups can become set ups within set ups, and being stopped out in the middle is less than ideal. If I am stopped out for a full loss on the same set up twice then I know I am not reading the market correctly and I need to stop trading that stock or group of stocks for a short time.
The underlying principle is managing risk. I can never lose 1% of my capital on any one set up entry. My ASX stock watch list currently has over 50 stocks on it, at least one will hopefully trigger a buy signal soon, and as long as the ASX trades above its upward sloping 130 and 200 days MA's I will continue to take full sized positions.
What I want to to avoid at all costs is doing what Diatribe did; taking a short DOW position in October without a stop loss, and then adding to it when he was wrong with profits from his bit coin sale. That's a recipe for financial disaster and can end with one receiving advice on the direction of price of gold from imaginary friends.
