Tight Stop Losses and Tight Underwear

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Tight Stop Losses and Tight Underwear

One of the great mysteries that I have tried to investigate throughout my trading career is the attraction to tight stop loss parameters. I just don’t get it; is a trade better because you won with a tight stop loss as opposed to a wider stop loss? I suppose the general theory is that you are risking less with a tight stop and conversely, you are risking more with a wider stop. Is that really the case?

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