If you buy a stock at the right time, it should NEVER fall below your buy price. Take a look at HL as a recent example --I actually purchased this stock. Just to clarify, I believe that we have started a major bear market ---so I am ONLY buying gold/silver stocks as I believe they are counter-cyclical. Anyway, I actually didn't buy this stock at the RIGHT time ---before I could do anything it was up to $10.75 on major volume (3rd hour of trade on Nov. 6th). The correct "pivot point" was $10.25. Now, this stock will NEVER trade under $10.25 again --if it does, its not a good hold. Again, I'm long --if HL breaks under $10.50 I'm a seller --thats a $.25 loss for me. This is what I like to do ---a power stock will not show you a loss at any point if purchased correctly. I didn't buy this one correctly, I bought it at $10.75 ---even then, it should never show me a loss. Thus, the IBD 8% rule is a GREAT RULE --PLEASE DO YOURSELF SOME GOOD AND FOLLOW IT! However, for the experienced trader, 8% is the absolute maximum limit. It should never get that high ---most of the time, after the first day a 2% or even a break even stop is the correct way to go.