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The MF has recently published some quotes and motto's from Warren Buffet about his #1 rule of investing.....never lose money and his #2 rule of investing.....always follow rule #1.

I think this is a very simple but powerful concept when you consider that if you lose 50% on an investment you need to find another investment that provides a 100% return before you break even.

When investing new money does anyone have any books, articles, strategies, or thoughts to suggest on how to use Stop Loss' to prevent you from losing money?

I know many people say that Stop Loss's will simply result in getting stopped out of good stocks on bad days and that if you buy stocks with an appropriate margin of safety over the long term you shouldn't worry about a short term loss. While I understand you need to buy for the long term I also know that many companies that look like strong long term investments don't work out and you end up breaking Buffet's #1 rule.

That said, I'm hoping some of the more experienced investors in the MF community can give me some sage advice on the use of Stop Loss's to protect on the downside and how to buy back in if you get stopped out of a stock that you still want to own long term.

Also, I know you can always dollar cost average but I tend to invest in chunks not systematically with equal dollar amounts so any buying strategies with downside protection ideas would be greatly appreciated.

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