Investors who bought into the Japanese equity index on 29 December 1989, more than 30 years ago, are still trading at a 15.5% loss versus current levels.
It is worth noting that stop loss and take profit trades can also be placed as and when new positions are added to the portfolio.
In some cases, these levels can be triggered outside the target percentages if the market 'gaps up or down' on market opening - for instance, when a share price or the price of other financial instruments is higher or lower on market open than it closed the day before.
In my conversations with retail investors, I am further perplexed at misconceptions around market liquidity and how long does it take to add to or reduce a position in a portfolio.
Almost all retail portfolios can be liquidated immediately unless they are made up of highly illiquid instruments. This appears to have been poorly explained.
Wealth and asset managers should be able to provide the ability to place stop loss and take profit orders, and if they are not, it is important that retail investors question this.
Is it because their preference is to keep their clients fully invested come what may, because this is where their model is most effective or fee maximisation is achieved?
Or is it because they have not invested appropriately in the requisite technology to enable that level of automation?
Retail investors should create a catalyst for change by demanding from their wealth and asset managers access to all the instruments and tools that would allow them to make better investment decisions and generate returns.
Stop losses and take profits, or knowing when to say 'stop' or 'enough is enough' are empowering and sensible measures. A good practice in general and particularly important in a volatile market.
They provide an effective way to help preserve capital or to lock in profit, allowing investors the opportunity to regroup their thoughts, review the situation and the overall strategy, or to put it another way - to live to fight another day.
Volatile markets require dynamic and prudent risk management strategies and your wealth or asset manager should provide them.
If not, it may be time to put a stop loss order on your relationship with them.
Charlie White-Thomson is chairman of Saxo Bank in the UK