With the XJO down about 340 for the week and more to come on Monday what a good time to start a discussion on the use of stop losses. Firstly nothing I say here is a recommendation to do anything. I have built up my own investing philosophy over the years that suits me. The way I do things may be strongly criticised and objected to by other investors. The whole point here is to learn so we can all become more profitable investors. I don't use automatic stop losses. (sounds like AA) My approach to share market investing involves 100% hands on ie. selection, buy, sell. The only variation to this is my investment in the Navra Fund for the great income it produces. The market will dictate in which direction a share price will go. All I do is research stocks that I think will go up and then buy them if they look like good value. If I'm wrong and the share price declines too much I'll sell. That is, when I feel I should sell because there is better value to be had elsewhere. Yes, it's a bit seat of the pants stuff but I like to keep it as simple as possible. Only I decide when I will sell, it may be before the normally used setting points for stop losses or it may be after. I used to use a percentage point from the previous high for a stock and if I still had been using that I wouldn't have been stopped out of four of the stocks I currently have. I bailed out of a couple early in the week though. Looking forward to hearing everyone elses point of view.