Stop Loss in Value Investing

Dear VP members,

I have been reading this fascinating book ‘How I made $2m in Stock Market’ which talks a lot about stop loss. Even though the author is a short-term trader, the book is a worthwhile and pleasurable read for a newbie like me.

I have jotted down some of the questions that occurred to me as I was reading the book:

• Is stop loss a relevant tool in value investing – is it more useful for newbies?
• Do you use stop loss regularly in your investments – even for a long term investment horizon?
• What is the right way to use a stop loss in a value / growth investing process?
• How have you effectively use stop loss – how do you revise it as the stock moves up?
• What is the margin that you use for stop loss – I understand this depends on the volatility of the stock in question?
• What is your philosophy behind the whole process – how much does a share has to go down from your original investment levels for you to take a second look at your original reasoning?

Would be really great if the seniors provide their thoughts on this

Thanks!
Sathya