Disliked{quote} I think your question is overly simplistic. First of all you have not mentioned any reasons for your hypothetical trade. Most traders I know (myself included) open a position thinking that price will continue to go in the direction of their trade...otherwise why open the position at all. Following this logic then the placement of a stop loss is presumed to be protective in nature. Its whole concept is to protect against catastrophic loss - much like an insurance policy. The idea is you are willing to risk a small amount to realize the potential...Ignored