Do breakouts and pullback to ma get different stops or do you usually stick to 4-5% (think I saw that referenced by you somewhere)?
I use a 4%-5% stop on an entry point. If we keep losses small then we will not get hurt. But, if a stock I bought starts to advance I raise the stop to ensure a winning trade. In this market it is best to take profits quickly as most spikes are sold and stocks return to the pivot areas rather quickly.
Take DXCM for example. I bought the pullback to the 21ema at $113.00 on November 30. I would use 5% stop loss from $113.00. Once it advances then I use the next day's low ($116.25) as a stop. The stop would have me out of that trade on November 2 as the stock undercut the $116.25 low from November 2. It may seem a little too rigid and the stop too tight. But, the market conditions have dictated tighter stops. I am justifying to hit singles in this market.
I hope this answers your question!
Regards,
Marty
