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Quickly I will clarify my question.
If I am trading, then down 80% will never happen (unless the gap down of my worst nightmare occurs). If my initial risk was defined that large, then I must have some amazing upside potential - but even then my position size would be so small...anyways, you get it.
HOWEVER, if I am instead investing what are the relative philosophies on taking a loss vs. DCA a position? I suppose this is a much less mechanical arena of play. My (tentative) system for trading is, chronologically speaking:
research - setup - entry - and then let it go (meaning the stops and multiple exits take care of the rest)
Because of this Dee's 80% loss in ACAD looks unacceptable, yet if I take on a long term position I don't know how to protect from such a possibility.
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