The crucial point to remember when using this system, is that although the stop-loss is able to rise, it will never fall below its current limit that is the time you will sell the share. It should not be underestimated how important the use of a stop-loss system is, whether you are doing this as a hobby yourself, if you are a member of a share club or a long time professional investor. There is nothing complicated about the system, it simply takes out the emotional side of selling shares, some of which you may have held for long periods of time. It is workable most of the time, but you must also watch prices yourself periodically for it to be truly effective. This is not investment advice and please remember that the contributors may or may not hold shares in some of the companies discussed.
Shares can go down as well as up and can sometimes collapse completely.
Before investing anything always do your own research and seek the advices of a registered Financial Adviser.