Very good post! As you know, I trade with systems, so I just let the computer tell me what to do. This helps quiet the noise, and let's me tune out all the stuff that I can make up in my head about what I think the market is going to do.
I just recently learned of your site, and was surprised to see a reference to my article at Trade 4 Cash regarding the use of stop losses. Richard is absolutely right - I only devote 1/12th (8.3%) of my total capital to any one trade. So if the stock ceased to exist, I would only take an 8.3% hit to my account.
The use of stop losses is a decision that each trader must make for himself. There are good points to be made on each side.
BTW I like your site, and will be adding it to my blogroll in the next day or two. Keep up the good work!