Prospectus at Move the Markets recently detailed entry, management, and exit (by stop) of a trade in RIMM.

The post highlights the detailed process from set-up, entry, and other aspects and then concludes with a nice explanation of the lesson learned from the experience that resulted in a 1-R loss due to stop-loss placement.

Prospectus notes the following highlighted points:

• Don’t treat your data or your chart as gospel!

• Place physical stop orders with your broker at your own peril!

• Avoid any kind of round number for your stop!

In addition, readers have added various comments as to their experiences & advice on the topic.

I don’t have all the answers on stop-loss placement, and have fallen victim to renegade stop loss action and have also lost money by not placing stops to try to fight back against this phenomenon.  It takes practice and real-world experience/trading to figure out what works best for you and your system/approach, and there really isn’t one overall answer that works for everyone every time.   Keep practicing, readying, studying, and experiencing and once you have a solid basis, be consistent in your application of your method.