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I think automatic is typically a bad idea, especially because algos are said to be programmed to trigger stops for exactly this purpose.

It is very important to understand that one's actions are not necessarily invisible to the market sharks. One should assume that a big fund knows where stop losses are concentrated by purchasing the information.

However, one does not need an automatic stop and if one wants to have an auto stop, it can be a stop limit order to prevent precisely the kind of down elevator that can occur on a stock with poor liquidity.

I am no fan of stops at all, which is why I have 1 automatic and 1 "mental," but there is an argument to be made for stops especially when purchasing in roaring markets.

BTW, there is a service that had a smart loss on ARKF last month. Although ARKF went south of there about 3-4$ per share, it is currently north about 3$. That portfolio sold out of ARKF. Considering the general context, that looks like a bad decision and a typical case of how a stock loss can hurt.
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