Is it ok to chamber and unload without firing the round? I have heard that doing this over and over will damage the round. Is there any truth to this?
Also how often do you rotate your night stand ammo?
Yup, lotsa truth to it. The more the round goes in and out of the chamber, the more is likely the bullet is to be pushed back into the case. This of course shortens the overall length, creating a feeding problem. It may "break the waterproof seal" of the case mouth. Push it in far enough, and pressure when it's fired can be high enough to create a "catastrophic event."
Moreover, each run in and out of the chamber chews up the rim a little bit via the extractor and ejector. Any imperfection in such dimensions can contribute to feeding problems to a greater or lesser degree.
Personally, if I've had to clear a carry or home defense gun, I'll put the chambered round in a pocket separately, and put it toward the middle or the bottom of the cartridge stack when the magazine has been reloaded. After a few chamberings, it will go in the cartridge box upside down (nose up) to mark it as a practice round, unless it is noticeably shortened.
When you clean the gun, compare the cartridges as to length. Any round visibly shorter than the others at all goes into the training bin; anything REALLY short is disposed of without firing.
Cheap in the long run. Consider a protocol that allows a loaded gun to remain loaded, and safely under lock and key when not under your immediate control. The fewer times the gun is manipulated unnecessarily, the fewer chances there are for something to go wrong.
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