My thoughts on various strategies is you have to stick with them. The one you mentioned is a good one. I use stops to limit my downside, however if I really like a stock I buy more as it goes down because I think I am smarter than everyone else.
Personally I have hit the age and energy level where I find good money managers, give them the money and monitor over time how they do against a peer group.
I find in my job I have to measure my clients nature and structure their investments around that. Some of my clients would go nuts everytime a good stock got called away in your scenario.
My bottom line is if you have a strategy that will get you reasonable returns, stick with it and don't get emotional. If a person has a strategy that is going to way outperform the market, I just hope they don't tell others and take them down too.