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Hello Bullmarket,

I don't see that investing all your capital in one company with a stop loss of 2% is any riskier than investing all your capital in 20 companies with a 2% stop loss on each.The set risk is the same(The hard dollars).Again I am not advocating this as a trading style, just that the numbers will be the same, in theory anyway.

As for your second point about paper losses being real, I think this is very subjective because none of us will get out at the very top in the long term, so as far as I understand you are stating that we all lose money when we sell.(potential profits).To me, while the trade is on, this would just be normal drawdown, when we close the trade, it goes back to risk/reward and basic profit or loss.No point thinking about what might have been, we would all drive ourselves crazy :screwy:

I still stand by my point about moving the stop to breakeven as soon as possible becomes a no risk trade.The more we can do this, the less losses we have (which isn't overly important) but we are giving ourselves the chance of only making profits in the long term.