Yea #2 is debatable. If you use a mechanical system than I agree that your losses should always be less than your winners. However with longer term trades, as long as you are properly capitalized you should be able to weather huge swings against you without any stop loss. Remember, I said you must be properly capitilized. There's a good lesson on it in the school. It's the last college lesson I think. Talks about leverage and margin. Definitely read that!
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