Danger Of Using "Stop Loss"

Why I stopped using stop loss orders
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MIAMI (MarketWatch) — I believe in stop loss orders to protect stock positions or to lock in gains. When the stop loss is triggered, your stock is automatically sold at the market at the best available price.
The best available price? Unfortunately, that can be a misnomer.
In a normal market (if there is such a thing), the stop loss can work as intended. You buy a stock at $50, and enter a stop loss order to sell at $47.50, which limits your loss to 5%.
In reality, in a fast market when the stock gaps down (during flash crashes, breaking news, or fake tweets), your stop loss is triggered. The bad news is that it will be triggered at the next available market price, which could be many points lower.
In other words, your stock could be automatically sold at the lowest price, and instead of locking in a 5% loss, you could lose much more.
Another problem with a stop loss order is that when you enter it into the computer, the order is transparent. A game that some market-makers played (these days, it will be computer algorithms) is “run the stops,” when the stock is forced low enough to trigger a large cluster of stop loss orders (usually at round numbers or well-known support and resistance levels). After the stock is sold at a popular stop loss price, the stock reverses direction and rallies.
The biggest problem with stop losses is that you have given up control of your sell order to the computer. During volatile markets, that can cost you money. But there is an alternative.
Price alerts
I still believe in stop losses, but not the automatic kind. Rather than using automatic stop losses, I set up price alerts for the securities I bought (and for those I plan to buy). For example, if I buy XYZ stock at $20 per share, I might set a price alert at $19 (5% loss), and also at $25 (25% gain).
If the $19 alert is triggered, I am notified by email and text message. Next, I’ll turn to my mobile device and decide what action to take. More than likely, I’ll sell depending on market conditions. And if the $25 price alert is triggered, I might sell for a profit or set new price alerts.
The main point is that I am in control of my sell orders. Technology has made price alerts more practicable than in the old days. First, because of mobile devices, you are notified instantly if the target price is triggered. Second, you can take immediate action. Before the Internet, you had to run to a phone and call your brokerage firm. (During the 1987 market crash, phone lines jammed because of the huge influx of orders. By the time brokers entered their clients’ sell orders, stock prices were already at rock bottom.)
Note: Stop loss orders still make sense if you are unable to access your account immediately, for example, if you are on vacation. In addition, if you are not disciplined and ignore price alerts (hoping your stock will come back one day), automatic stop losses might be a better alternative.
Alert prices
Now, let’s take a look how the overall market is doing, and which are the leading stocks within the strongest sectors. Amy Smith, author of “How to Make Money in Stocks Success Stories” and a market expert at Investor’s Business Daily, gave her view of the overall market.
“We’ve been in an uptrend since November and have had a nice move along the way with the indexes moving into new high ground. Although there were a few distribution days (selling), and the market corrected a little bit, we went back into an uptrend. Savvy investors are keeping a close eye on the volume going into the indexes.”
Smith says to watch for heavier volume as the market moves higher. “If volume continues to increase, it indicates institutions are buying shares. The key is whether the major indexes can hold onto their new highs.”
Using the CAN SLIM® investing method, Smith is also looking at how the leading stocks are doing. Are they holding or starting to correct? So far, they are holding on, but that could quickly change. “If you see indexes and leading stocks pulling back on heavier volume, that is an indication that professional buyers are lightening their positions,” Smith says. “That is the time you don’t want to be in the market.”
One group to watch: Biomedical stocks. These companies produce drugs and services to people that need health care. “We have an aging population and people need these products,” Smith says, “but if this group begins to weaken, that could also spell trouble for the overall market unless another sector takes its place.”
According to Smith, stocks in that sector that have had huge earnings increases so far (ranging from 27% to 63%) include Celgene, The Medicines Company , Valeant Pharmaceuticals International, Cigna, and Biogen Idec. There are also several ETFs that focus on biomedical stocks. As always, just because this industry has done well in the past is no guarantee it will do well in the future.
My opinion: Many retail investors are still suspicious of this market. Why? Because they think the market is logical. Well, if you want logic, play chess. Otherwise, until there is evidence of a correction or bear market (indicators turning down, more than two strong down days in a row, strong opening but weak close, and leading stocks unable to advance), this bull market will continue. That said, never let down your guard — this market could turn at any time.
NB:-
Pardon me,
i think even value investors need to know market psychology.
So there, i once use to believe in using "STOP LOSS" too.

temperament,

There is such a thing called Limit stop loss order.

Then there is the "blank cheque" stop loss that triggers an market order

Having said that, what can I do when the dark force goes running the stops?

It goes with the territory.

Like they say, the best form of birth control is abstinence.

(22-10-2013, 10:03 AM)Temperament Wrote: Why I stopped using stop loss orders
PDF | Print | E-mail
MIAMI (MarketWatch) — I believe in stop loss orders to protect stock positions or to lock in gains. When the stop loss is triggered, your stock is automatically sold at the market at the best available price.
The best available price? Unfortunately, that can be a misnomer.
In a normal market (if there is such a thing), the stop loss can work as intended. You buy a stock at $50, and enter a stop loss order to sell at $47.50, which limits your loss to 5%.
In reality, in a fast market when the stock gaps down (during flash crashes, breaking news, or fake tweets), your stop loss is triggered. The bad news is that it will be triggered at the next available market price, which could be many points lower.
In other words, your stock could be automatically sold at the lowest price, and instead of locking in a 5% loss, you could lose much more.
Another problem with a stop loss order is that when you enter it into the computer, the order is transparent. A game that some market-makers played (these days, it will be computer algorithms) is “run the stops,” when the stock is forced low enough to trigger a large cluster of stop loss orders (usually at round numbers or well-known support and resistance levels). After the stock is sold at a popular stop loss price, the stock reverses direction and rallies.
The biggest problem with stop losses is that you have given up control of your sell order to the computer. During volatile markets, that can cost you money. But there is an alternative.
Price alerts
I still believe in stop losses, but not the automatic kind. Rather than using automatic stop losses, I set up price alerts for the securities I bought (and for those I plan to buy). For example, if I buy XYZ stock at $20 per share, I might set a price alert at $19 (5% loss), and also at $25 (25% gain).
If the $19 alert is triggered, I am notified by email and text message. Next, I’ll turn to my mobile device and decide what action to take. More than likely, I’ll sell depending on market conditions. And if the $25 price alert is triggered, I might sell for a profit or set new price alerts.
The main point is that I am in control of my sell orders. Technology has made price alerts more practicable than in the old days. First, because of mobile devices, you are notified instantly if the target price is triggered. Second, you can take immediate action. Before the Internet, you had to run to a phone and call your brokerage firm. (During the 1987 market crash, phone lines jammed because of the huge influx of orders. By the time brokers entered their clients’ sell orders, stock prices were already at rock bottom.)
Note: Stop loss orders still make sense if you are unable to access your account immediately, for example, if you are on vacation. In addition, if you are not disciplined and ignore price alerts (hoping your stock will come back one day), automatic stop losses might be a better alternative.
Alert prices
Now, let’s take a look how the overall market is doing, and which are the leading stocks within the strongest sectors. Amy Smith, author of “How to Make Money in Stocks Success Stories” and a market expert at Investor’s Business Daily, gave her view of the overall market.
“We’ve been in an uptrend since November and have had a nice move along the way with the indexes moving into new high ground. Although there were a few distribution days (selling), and the market corrected a little bit, we went back into an uptrend. Savvy investors are keeping a close eye on the volume going into the indexes.”
Smith says to watch for heavier volume as the market moves higher. “If volume continues to increase, it indicates institutions are buying shares. The key is whether the major indexes can hold onto their new highs.”
Using the CAN SLIM® investing method, Smith is also looking at how the leading stocks are doing. Are they holding or starting to correct? So far, they are holding on, but that could quickly change. “If you see indexes and leading stocks pulling back on heavier volume, that is an indication that professional buyers are lightening their positions,” Smith says. “That is the time you don’t want to be in the market.”
One group to watch: Biomedical stocks. These companies produce drugs and services to people that need health care. “We have an aging population and people need these products,” Smith says, “but if this group begins to weaken, that could also spell trouble for the overall market unless another sector takes its place.”
According to Smith, stocks in that sector that have had huge earnings increases so far (ranging from 27% to 63%) include Celgene, The Medicines Company , Valeant Pharmaceuticals International, Cigna, and Biogen Idec. There are also several ETFs that focus on biomedical stocks. As always, just because this industry has done well in the past is no guarantee it will do well in the future.
My opinion: Many retail investors are still suspicious of this market. Why? Because they think the market is logical. Well, if you want logic, play chess. Otherwise, until there is evidence of a correction or bear market (indicators turning down, more than two strong down days in a row, strong opening but weak close, and leading stocks unable to advance), this bull market will continue. That said, never let down your guard — this market could turn at any time.
NB:-
Pardon me,
i think even value investors need to know market psychology.
So there, i once use to believe in using "STOP LOSS" too.

I disagree with the article. I think stop losses are a sort of enforced discipline in investing and even if they force you out at the worst possible price, it still enables you to rethink and reinvest calmly. People tend to be reluctant to cut their losses and sell at lower than their purchase prices, but investing is a forward looking game. Purchase prices are sunk costs and irrelevant once the order is executed. A quote from George Soros in 1987 after he sold out his entire portfolio at the absolute low came to mind "I will walk out of here, they're not gonna carry me out."

(22-10-2013, 10:30 AM)Clement Wrote:

(22-10-2013, 10:03 AM)Temperament Wrote: Why I stopped using stop loss orders
PDF | Print | E-mail
MIAMI (MarketWatch) — I believe in stop loss orders to protect stock positions or to lock in gains. When the stop loss is triggered, your stock is automatically sold at the market at the best available price.
The best available price? Unfortunately, that can be a misnomer.
In a normal market (if there is such a thing), the stop loss can work as intended. You buy a stock at $50, and enter a stop loss order to sell at $47.50, which limits your loss to 5%.
In reality, in a fast market when the stock gaps down (during flash crashes, breaking news, or fake tweets), your stop loss is triggered. The bad news is that it will be triggered at the next available market price, which could be many points lower.
In other words, your stock could be automatically sold at the lowest price, and instead of locking in a 5% loss, you could lose much more.
Another problem with a stop loss order is that when you enter it into the computer, the order is transparent. A game that some market-makers played (these days, it will be computer algorithms) is “run the stops,” when the stock is forced low enough to trigger a large cluster of stop loss orders (usually at round numbers or well-known support and resistance levels). After the stock is sold at a popular stop loss price, the stock reverses direction and rallies.
The biggest problem with stop losses is that you have given up control of your sell order to the computer. During volatile markets, that can cost you money. But there is an alternative.
Price alerts
I still believe in stop losses, but not the automatic kind. Rather than using automatic stop losses, I set up price alerts for the securities I bought (and for those I plan to buy). For example, if I buy XYZ stock at $20 per share, I might set a price alert at $19 (5% loss), and also at $25 (25% gain).
If the $19 alert is triggered, I am notified by email and text message. Next, I’ll turn to my mobile device and decide what action to take. More than likely, I’ll sell depending on market conditions. And if the $25 price alert is triggered, I might sell for a profit or set new price alerts.
The main point is that I am in control of my sell orders. Technology has made price alerts more practicable than in the old days. First, because of mobile devices, you are notified instantly if the target price is triggered. Second, you can take immediate action. Before the Internet, you had to run to a phone and call your brokerage firm. (During the 1987 market crash, phone lines jammed because of the huge influx of orders. By the time brokers entered their clients’ sell orders, stock prices were already at rock bottom.)
Note: Stop loss orders still make sense if you are unable to access your account immediately, for example, if you are on vacation. In addition, if you are not disciplined and ignore price alerts (hoping your stock will come back one day), automatic stop losses might be a better alternative.
Alert prices
Now, let’s take a look how the overall market is doing, and which are the leading stocks within the strongest sectors. Amy Smith, author of “How to Make Money in Stocks Success Stories” and a market expert at Investor’s Business Daily, gave her view of the overall market.
“We’ve been in an uptrend since November and have had a nice move along the way with the indexes moving into new high ground. Although there were a few distribution days (selling), and the market corrected a little bit, we went back into an uptrend. Savvy investors are keeping a close eye on the volume going into the indexes.”
Smith says to watch for heavier volume as the market moves higher. “If volume continues to increase, it indicates institutions are buying shares. The key is whether the major indexes can hold onto their new highs.”
Using the CAN SLIM® investing method, Smith is also looking at how the leading stocks are doing. Are they holding or starting to correct? So far, they are holding on, but that could quickly change. “If you see indexes and leading stocks pulling back on heavier volume, that is an indication that professional buyers are lightening their positions,” Smith says. “That is the time you don’t want to be in the market.”
One group to watch: Biomedical stocks. These companies produce drugs and services to people that need health care. “We have an aging population and people need these products,” Smith says, “but if this group begins to weaken, that could also spell trouble for the overall market unless another sector takes its place.”
According to Smith, stocks in that sector that have had huge earnings increases so far (ranging from 27% to 63%) include Celgene, The Medicines Company , Valeant Pharmaceuticals International, Cigna, and Biogen Idec. There are also several ETFs that focus on biomedical stocks. As always, just because this industry has done well in the past is no guarantee it will do well in the future.
My opinion: Many retail investors are still suspicious of this market. Why? Because they think the market is logical. Well, if you want logic, play chess. Otherwise, until there is evidence of a correction or bear market (indicators turning down, more than two strong down days in a row, strong opening but weak close, and leading stocks unable to advance), this bull market will continue. That said, never let down your guard — this market could turn at any time.
NB:-
Pardon me,
i think even value investors need to know market psychology.
So there, i once use to believe in using "STOP LOSS" too.

I disagree with the article. I think stop losses are a sort of enforced discipline in investing and even if they force you out at the worst possible price, it still enables you to rethink and reinvest calmly. People tend to be reluctant to cut their losses and sell at lower than their purchase prices, but investing is a forward looking game. Purchase prices are sunk costs and irrelevant once the order is executed. A quote from George Soros in 1987 after he sold out his entire portfolio at the absolute low came to mind "I will walk out of here, they're not gonna carry me out."

i agree if you are referring to very shot-term trading though the market with ultra fast computer algorithm can take advantage of all the stop loss orders. Or for that matter, all sorts of orders.

(22-10-2013, 10:42 AM)Temperament Wrote:

(22-10-2013, 10:30 AM)Clement Wrote:

(22-10-2013, 10:03 AM)Temperament Wrote: Why I stopped using stop loss orders
PDF | Print | E-mail
MIAMI (MarketWatch) — I believe in stop loss orders to protect stock positions or to lock in gains. When the stop loss is triggered, your stock is automatically sold at the market at the best available price.
The best available price? Unfortunately, that can be a misnomer.
In a normal market (if there is such a thing), the stop loss can work as intended. You buy a stock at $50, and enter a stop loss order to sell at $47.50, which limits your loss to 5%.
In reality, in a fast market when the stock gaps down (during flash crashes, breaking news, or fake tweets), your stop loss is triggered. The bad news is that it will be triggered at the next available market price, which could be many points lower.
In other words, your stock could be automatically sold at the lowest price, and instead of locking in a 5% loss, you could lose much more.
Another problem with a stop loss order is that when you enter it into the computer, the order is transparent. A game that some market-makers played (these days, it will be computer algorithms) is “run the stops,” when the stock is forced low enough to trigger a large cluster of stop loss orders (usually at round numbers or well-known support and resistance levels). After the stock is sold at a popular stop loss price, the stock reverses direction and rallies.
The biggest problem with stop losses is that you have given up control of your sell order to the computer. During volatile markets, that can cost you money. But there is an alternative.
Price alerts
I still believe in stop losses, but not the automatic kind. Rather than using automatic stop losses, I set up price alerts for the securities I bought (and for those I plan to buy). For example, if I buy XYZ stock at $20 per share, I might set a price alert at $19 (5% loss), and also at $25 (25% gain).
If the $19 alert is triggered, I am notified by email and text message. Next, I’ll turn to my mobile device and decide what action to take. More than likely, I’ll sell depending on market conditions. And if the $25 price alert is triggered, I might sell for a profit or set new price alerts.
The main point is that I am in control of my sell orders. Technology has made price alerts more practicable than in the old days. First, because of mobile devices, you are notified instantly if the target price is triggered. Second, you can take immediate action. Before the Internet, you had to run to a phone and call your brokerage firm. (During the 1987 market crash, phone lines jammed because of the huge influx of orders. By the time brokers entered their clients’ sell orders, stock prices were already at rock bottom.)
Note: Stop loss orders still make sense if you are unable to access your account immediately, for example, if you are on vacation. In addition, if you are not disciplined and ignore price alerts (hoping your stock will come back one day), automatic stop losses might be a better alternative.
Alert prices
Now, let’s take a look how the overall market is doing, and which are the leading stocks within the strongest sectors. Amy Smith, author of “How to Make Money in Stocks Success Stories” and a market expert at Investor’s Business Daily, gave her view of the overall market.
“We’ve been in an uptrend since November and have had a nice move along the way with the indexes moving into new high ground. Although there were a few distribution days (selling), and the market corrected a little bit, we went back into an uptrend. Savvy investors are keeping a close eye on the volume going into the indexes.”
Smith says to watch for heavier volume as the market moves higher. “If volume continues to increase, it indicates institutions are buying shares. The key is whether the major indexes can hold onto their new highs.”
Using the CAN SLIM® investing method, Smith is also looking at how the leading stocks are doing. Are they holding or starting to correct? So far, they are holding on, but that could quickly change. “If you see indexes and leading stocks pulling back on heavier volume, that is an indication that professional buyers are lightening their positions,” Smith says. “That is the time you don’t want to be in the market.”
One group to watch: Biomedical stocks. These companies produce drugs and services to people that need health care. “We have an aging population and people need these products,” Smith says, “but if this group begins to weaken, that could also spell trouble for the overall market unless another sector takes its place.”
According to Smith, stocks in that sector that have had huge earnings increases so far (ranging from 27% to 63%) include Celgene, The Medicines Company , Valeant Pharmaceuticals International, Cigna, and Biogen Idec. There are also several ETFs that focus on biomedical stocks. As always, just because this industry has done well in the past is no guarantee it will do well in the future.
My opinion: Many retail investors are still suspicious of this market. Why? Because they think the market is logical. Well, if you want logic, play chess. Otherwise, until there is evidence of a correction or bear market (indicators turning down, more than two strong down days in a row, strong opening but weak close, and leading stocks unable to advance), this bull market will continue. That said, never let down your guard — this market could turn at any time.
NB:-
Pardon me,
i think even value investors need to know market psychology.
So there, i once use to believe in using "STOP LOSS" too.

I disagree with the article. I think stop losses are a sort of enforced discipline in investing and even if they force you out at the worst possible price, it still enables you to rethink and reinvest calmly. People tend to be reluctant to cut their losses and sell at lower than their purchase prices, but investing is a forward looking game. Purchase prices are sunk costs and irrelevant once the order is executed. A quote from George Soros in 1987 after he sold out his entire portfolio at the absolute low came to mind "I will walk out of here, they're not gonna carry me out."

i agree if you are referring to very shot-term trading though the market with ultra fast computer algorithm can take advantage of all the stop loss orders. Or for that matter, all sorts of orders.

I don't think it only applies to short term trading. We need to constantly test our hypothesis and admit that we don't know everything. It is easier to be unbiased and calm in a falling market if you are already out. The idea of this site is to invest in a businesslike manner and in business, the most important thing is to be able to open tomorrow.

(22-10-2013, 10:48 AM)Clement Wrote:

(22-10-2013, 10:42 AM)Temperament Wrote:

(22-10-2013, 10:30 AM)Clement Wrote:

(22-10-2013, 10:03 AM)Temperament Wrote: Why I stopped using stop loss orders
PDF | Print | E-mail
MIAMI (MarketWatch) — I believe in stop loss orders to protect stock positions or to lock in gains. When the stop loss is triggered, your stock is automatically sold at the market at the best available price.
The best available price? Unfortunately, that can be a misnomer.
In a normal market (if there is such a thing), the stop loss can work as intended. You buy a stock at $50, and enter a stop loss order to sell at $47.50, which limits your loss to 5%.
In reality, in a fast market when the stock gaps down (during flash crashes, breaking news, or fake tweets), your stop loss is triggered. The bad news is that it will be triggered at the next available market price, which could be many points lower.
In other words, your stock could be automatically sold at the lowest price, and instead of locking in a 5% loss, you could lose much more.
Another problem with a stop loss order is that when you enter it into the computer, the order is transparent. A game that some market-makers played (these days, it will be computer algorithms) is “run the stops,” when the stock is forced low enough to trigger a large cluster of stop loss orders (usually at round numbers or well-known support and resistance levels). After the stock is sold at a popular stop loss price, the stock reverses direction and rallies.
The biggest problem with stop losses is that you have given up control of your sell order to the computer. During volatile markets, that can cost you money. But there is an alternative.
Price alerts
I still believe in stop losses, but not the automatic kind. Rather than using automatic stop losses, I set up price alerts for the securities I bought (and for those I plan to buy). For example, if I buy XYZ stock at $20 per share, I might set a price alert at $19 (5% loss), and also at $25 (25% gain).
If the $19 alert is triggered, I am notified by email and text message. Next, I’ll turn to my mobile device and decide what action to take. More than likely, I’ll sell depending on market conditions. And if the $25 price alert is triggered, I might sell for a profit or set new price alerts.
The main point is that I am in control of my sell orders. Technology has made price alerts more practicable than in the old days. First, because of mobile devices, you are notified instantly if the target price is triggered. Second, you can take immediate action. Before the Internet, you had to run to a phone and call your brokerage firm. (During the 1987 market crash, phone lines jammed because of the huge influx of orders. By the time brokers entered their clients’ sell orders, stock prices were already at rock bottom.)
Note: Stop loss orders still make sense if you are unable to access your account immediately, for example, if you are on vacation. In addition, if you are not disciplined and ignore price alerts (hoping your stock will come back one day), automatic stop losses might be a better alternative.
Alert prices
Now, let’s take a look how the overall market is doing, and which are the leading stocks within the strongest sectors. Amy Smith, author of “How to Make Money in Stocks Success Stories” and a market expert at Investor’s Business Daily, gave her view of the overall market.
“We’ve been in an uptrend since November and have had a nice move along the way with the indexes moving into new high ground. Although there were a few distribution days (selling), and the market corrected a little bit, we went back into an uptrend. Savvy investors are keeping a close eye on the volume going into the indexes.”
Smith says to watch for heavier volume as the market moves higher. “If volume continues to increase, it indicates institutions are buying shares. The key is whether the major indexes can hold onto their new highs.”
Using the CAN SLIM® investing method, Smith is also looking at how the leading stocks are doing. Are they holding or starting to correct? So far, they are holding on, but that could quickly change. “If you see indexes and leading stocks pulling back on heavier volume, that is an indication that professional buyers are lightening their positions,” Smith says. “That is the time you don’t want to be in the market.”
One group to watch: Biomedical stocks. These companies produce drugs and services to people that need health care. “We have an aging population and people need these products,” Smith says, “but if this group begins to weaken, that could also spell trouble for the overall market unless another sector takes its place.”
According to Smith, stocks in that sector that have had huge earnings increases so far (ranging from 27% to 63%) include Celgene, The Medicines Company , Valeant Pharmaceuticals International, Cigna, and Biogen Idec. There are also several ETFs that focus on biomedical stocks. As always, just because this industry has done well in the past is no guarantee it will do well in the future.
My opinion: Many retail investors are still suspicious of this market. Why? Because they think the market is logical. Well, if you want logic, play chess. Otherwise, until there is evidence of a correction or bear market (indicators turning down, more than two strong down days in a row, strong opening but weak close, and leading stocks unable to advance), this bull market will continue. That said, never let down your guard — this market could turn at any time.
NB:-
Pardon me,
i think even value investors need to know market psychology.
So there, i once use to believe in using "STOP LOSS" too.

I disagree with the article. I think stop losses are a sort of enforced discipline in investing and even if they force you out at the worst possible price, it still enables you to rethink and reinvest calmly. People tend to be reluctant to cut their losses and sell at lower than their purchase prices, but investing is a forward looking game. Purchase prices are sunk costs and irrelevant once the order is executed. A quote from George Soros in 1987 after he sold out his entire portfolio at the absolute low came to mind "I will walk out of here, they're not gonna carry me out."

i agree if you are referring to very shot-term trading though the market with ultra fast computer algorithm can take advantage of all the stop loss orders. Or for that matter, all sorts of orders.

I don't think it only applies to short term trading. We need to constantly test our hypothesis and admit that we don't know everything. It is easier to be unbiased and calm in a falling market if you are already out. The idea of this site is to invest in a businesslike manner and in business, the most important thing is to be able to open tomorrow.

We all like to think we are unbiased or open-minded so that we can make the correct decision with all the known "facts". In truth, none of us can.

Yes investing in the Market the number one principle consideration is how to survive and not how to get rich.

If you can survive more than 20 to 25 years in the market, you should be able to survive until you don't want to be in the Market.

People who survive in the market have more or less grasp the intricacy and mystery of the market.
But each of us may prosper yet have different understanding of the intricacy and mystery of the market.
Cheers!

will "circuit-breakers" help?

For those with many years of experience, I think they should be disciplined enough to do manual cut losses, and will not need automatic enforcement. I used George Soros as an example because I think it's this mindset that enabled him to have such a long and successful career. I can safely say that his success is not due to luck, as he has demonstrated that he has safeguards to ensure that he can continue. I think to survive for 20-25 years, we need a system that we know for sure that, come hell or high water, we will have the necessary capital to continue investing. For those who trust their own self discipline, manual cuts are better. For others, maybe they need to be forced to cut.

I think to a certain degree, stop-loss has its place. But for most people, stop loss will "fake you out" during times of negative sentiments.

I think of it like buying insurance, part of a process to ensure smooth operations and long term viability. The fake outs do cause increased transaction costs but I am willing to pay for the chance to think more clearly when things don't go my way. I have had bad experiences where i was long and wrong without a stop and would be willing to pay a little to avoid that experience again.