I think for a few gifted individuals or those who spend an incredible amount of time pouring over charts,the placement of stops and managing them is an art. I would agree that picking a spot and lving wth the consequences may be a very viable option,if not the best.But with a little effort,with todays systems and tools,one may very well discover a method to the madness.
it's a personal choice? The problem by being too quick to move to break even is that you can then get knocked out. I would say move into a bit more profit first.
It depends on the instrument. For instance, in crude oil I would always prefer a tight stop. Why? Because I know CL has on average at least 3-4 times during the trading day when it explodes at 40 ticks in any direction. Even if I lose on three 5 tick stop trades for every explosive move in crude it is still worth it. ES is more choppy and rangy, which suggent negative risk to reward with more trades during the days. Lets say you risk 4 point to get 6 tick and statistically you get those ticks 89 % of the time breaking even on another 5 and losing on 6. 24 points lost as opposed to more than 100 won. Of course its a dreamy statistic, but fractional profit factor in ES can possibly work if fine tuned ( haven't tried it my self ).