Use Protective Stopsby Jeff Boyd Authors & Publishers Inc.
Learn to use protective stops. Respect them and don't move. Hoping that a market will turn in your direction is a very delusive hope. By moving a stop loss further, a trader increases his chances to end up with a much bigger loss. When holding on to a losing trade for too long, and even if funds permit, traders as a rule are very reluctant to accept big losses, thus often continue "hoping for the best." In the mean time invested money is stuck in the open trade for unknown periods of time (weeks and even months) and cannot be used for opening new positions. Not working money - dead money. Also this will result in constant interest payments for holding open positions.