options (finance)

[rock1]

i have never traded using stop-losses...from what i know, i would say that people who do a lot of fundamental work generally do not use stop-losses, for the reasons you state...if you understand the financials of a company, u would want to buy more as it goes down as opposed to sell out (unless you set the stop loss down 15% or something, and if it gets hit u figure you have gotten somehting wrong)...stop-losses are really utilized by technical traders that look for patterns and dont really care about actual fundamentals...

currencies tend to trend a little more than equities so i would guess people use stop-losses a lot more in technical forex trading...