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Originally Posted by mayday9
Averaging down on a stock that triggered your stop loss limit is not a good idea.. instead of cuting your losses, you put more on the stake because your mind just doesn't want to let go. You should really stick to the 2% stop loss rule because it's a good one. Also you shouldn't wait for the next day's open to sell. When -2% is hit just let go of it. There's plenty of other fish in the sea.
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Ok, there is alot of confusion on my explanation of the 2% rule, and rightly so, because I didnt explain it very well. The 2% rule as stated here was for the sake of GFY mostly, because there is not that many seasoned traders here and I was afraid that epople would get themselves in trouble. I give myself a little more leeway on the stop losses because I feel I can control a bad trade and get out when I have to.