Well the classic buy set up is the pullback to the breakout point after price has proven itself by breaking out and cleaning out the stops and rallying somewhat. It's that pullback to that breakout point which is now support that is typically a good place to buy. And if it breaks down you know exactly where to stop out with a small loss. That is the classic old fashioned 'conservative' way to buy. A safer yet trade is to even wait for proof of that pullback 'test' holding and then placing a buy stop above the breakout rally high as confirmation it's all behind you. Not so easy to do if the market gaps and soars. Can be left standing at the station with the train long gone. I do like buying on pullbacks to support as well as I've been screwed too many times buying false breakouts that are nothing more than the short seller's stop losses being hit just above price resistance. Once the stops are taken out prices collapse again. So much for b.s.breakouts that aren't breakouts at all.

As far as holding a postion with a wide stop one has to ask the question of just how much drawdown to you find acceptable before you admit it was a bad trade. I don't stick around very long when wrong and exit as soon as the market doesn't do what I expected it to do. I guess its the old "P.O.P. theory (Phantom of the Pits author) He took a partial position and once proven correct would add to it. If not proven correct he would exit the position and had a very small loss each time.