Personally i've never understood that rationale of 'If it falls this much, I am selling to protect myself'. If it was a good buy when you bought it, its simply a better buy if it goes down. The lower a stock goes, the more valuable a buy at that level becomes.
You should only sell for two reasons:
1) You believe the stock is going down in the future. Notice that this is a predictive move and once the stock has gone down selling is useless unless you believe it will go down further. The further a stock has fallen, the less likely it will fall more since buying demand will appear (If all fundamentals have stayed the same anyhow).
2) You believe you can move that money into another stock and do better...Ie: better risk/reward.
If you find yourself selling for any other reason aside from #1 or #2 above, you need to consider that you might have too much invested in a security which is simply too volatile for your risk-tolerance. Either reducing exposure to a level you feel comfortable or moving the money into a less volatile security might be warranted. You do not want to remain in an uncomfortable situation and do the old 'buy high sell low' mistake.
-Fernando