There is a third alternative: placing the stop at the point at which the market will prove that your decision to enter the trade (at whatever point you entered it) was wrong. This is neither fixed at a set number of *s nor does it have anything to do with support or resistance as they are generally defined these days. Granted this requires far more data-gathering than most beginners are willing to do, but it will tell one when to push, when to pull, when to leave alone.
Indeed ... I do exactly this, myself (but in my case that is actually largely defined according to support or resistance: it's just very "local" support/resistance).
Did you make a killing in today's shock market, Xela...enough to buy fancy European label alligator boots, I love alligator. and ostrich. and stingray. and elephant. and there's even a fish variety. -- i love all exotic skins, except for snake. Animals and humans, hunter and prey, night and day, the internal war against doing good and evil, earthquakes and volcanos building support/resitance...the market is truly part art, part science. Make Trading Great Again 2018...High-Five` Pekelo and vanzandt and Sweet and Sour Bobby. and you too Speedo underwear, a Yin Yang symbol on each butt cheek. I want to buy Samsung's 49" ultrawide computer monitor, CHG90. it's mesmerizing. size does matter.
%% Lot of moves in the markets are like a stroke; acccidents don just happen they are caused But since you mentioned 2001-2003, most of that was bear market like GE is now + has been. SPY + QQQ ....are about as tight an uptrend as i seen it .