Excellent thread, there is another very common myth I would include - that moving stops in relation to entry points somehow affects the bottom line. I see these mantras bandied about all the time - move s/l to breakeven as soon as possible, lock in profits, never let a winner turn into a loser. I know some very experienced and successful traders believe firmly in this approach but I don't care how much money they make, it is still gamblers fallacy. At any given time, our position in the market (including the position of stops and limits) should be a direct reflection of where we feel the market is moving or going to move. This has absolutely NOTHING to do with where we entered the trade.
si hoc legere scis nimium eruditionis habes