Seeing multiple threads on arguing that you should always use stop losses with equity trades
I disagree
If you are investing only what you are willing to lose (which you should be doing anyway) it can be totally rational to hold equities without stop losses IMHO
Follow
if you lose 50% of your capital, you need to make 100% gains to get back to your starting point
even if you're an absolute maniac, stop losses are still in your interest. you can make a case that you shouldn't automate them, but you still need a stop loss
@AbstractFairy
It's symmetric: If you need higher % gains to achieve the same absolute gains, it means that future % losses will also cause fewer absolute losses
This mean the current expected relative value of holding the stock remain the same IMHO
(of course the absolute value of the equity is lower now, but it's too late to worry about that, since that is a "sunk cost" not directly relevant to future expected gains/losses)