had been playing with some long term investment strategies that also allow for exits if the market tanks.. Anyways one of those is to rebalance the value invested in a specific share every time it hits the "stoploss". If the trade is cash-positive you skim the profits, if cash negative you top up to original level. Runing the numbers have some interesting results. Stop at about 40% for one thing. For those interested in testing out this approach and running the numbers. Have a look at the following shares: psg, acl and gnd.
The idea of adding to loosers is not applicable in all cases. For example, trading indexes. Besides, wright or wrong does not enter into it. There is no moral code involved. like you always say, strategy may be to flip a coint. Only thing that matters if if it works.
I have been doing the exact opposite, I have been toping up on the winners and gagging the trailers. It doesn't make for pretty reading as far as my portfolio looks, cos the percentage gained is diminished when topping up and exacerbated when selling the losses. But my portfolio is def looking much healthier in monetary values!