Hi UT, with your stops I think the main question is: how does it work out? talking about the principle is nice, but useless when you don't bring it further. Why don't you look at a stock, go back a year or five, start an AIM account and see what happens? Do this with 10 stocks that look attractive to you. Then you have at least some facts to chew on. Start with an ETF like SPY or DIA, they are nice and slow. If it doesn't even work with those, fuggeddaboutit.
Regards,
Karel