I was just reading a separate thread, and got to thinking... I am a buyer and holder, and don't have stop losses on my ASX shares. If I did have, I would have been sold out on August 15, and I'd be forced to pay CGT on the shares as well... then I would buy back in on the up-swing - or would I? would my confidence be shattered by sub-prime fears? And the swing was so violent, the intraday 'V' on Aug 15 would've stopped me out (assuming a guaranteed stop loss! were there any buyers?) - and any sort of individual trader could not have reacted to the V unless they were handling only one or two positions maximum. With a portfolio of 20 stocks, I would've been mince meat. Even small caps can survive this type of correction, provided they have sound balance sheets, good growth prospects, and quality management. I could have bailed out of AGO at $1.00 in August, but I'm very pleased I didn't because they're back at $1.83 today. Surely there is a compelling argument for not having stop losses.