your stop loss conditions will change depending on your investment timeframe
as mentioned above, a stop that takes into account the ATR can be useful.....i personally look at (2.5 x ATR)
another stop that can be useful is the 'Chandelier Stop'
a simple yet effective stop is to use the swing low on the chart as your stop position....as the stock trends higher and additional swing lows are made, you move your stop up
or you can simply set a percentage or trailing stop, however these are not as effective
if you are looking to only protect your initial capital, you may wish to set an initial stop below your purchase price and not move it up at all as the trade moves ahead
a couple of questions to ask yourself....do you have a target price that you are going to sell at? if not, when do you plan to sell? are you comfortable using a stop loss to define your sell in all trades or would you prefer to sell when you choose to sell?
