Then you are day trading...you have much bigger problems to deal with than stop losses. The only thing that separates trading from gambling is with gambling you have to realize losses ..with trading you don't...unless you use stop losses. Thus the comparison.
Thank you murray t turtle for the response. I would like to hear what @wxytrader have to say to the questions as well.
%% I use stops , but I dont gamble; as far as business goes/ no such thing as business with out losses[expences LOL.] Dave ramsey limits his losses ; 1]mainly with REALOR liscense + lots of buys LOL 2]He limits dumb stuff by not ignoring his wife 'her feelings-in tuition on that home turned out to be a nightmare loss.......................'' 3]diversification time , in stock market 4-9] 5 fund types 10]Radio business 11] promotion disclosed with his ELP endorsement 12]Stays away from cons mostly LOL 13]Book royalties 14 ]Self published books 15]Some SPY 16] Limits loses with no e debt\leverage , never....................
Averaging down is essentially like having a dynamic stop price. But instead of actually getting stopped out of the trade you just keep reducing your break even which is ultimately what every stop loss wishes to achieve...to stop out at a break even.
But I'm not day trading, I'm swing/position trading. And there are times that you have to realize losses when you are stock trading. A company goes bankrupt. (Enron) A company drops in price and gets bought out in an all cash deal. A company gets taken private. Not to mention the company that drops in price and stays there. Ties up your capital for years. You can't tell me what your portfolio will be worth tomorrow or at anytime in the future. You are letting the market control your investments rather than having control yourself.
Competitions don't attract the most talented competitors, they attract people who want to be known as the most talented competitors.
Where do you get the money to average down? Where would you be if you averaged down on a stock like enron?