Gotta dissagree with leaving so much if the limb sticking out. Generally it is best to trim a limb at the collar where it is attached to the larger limb. This is where the branch is flairing. Studies have shown the tree heals over best when cut at this location.
Cutting flush is not good as noted. Leaving to much hanging out tends to attract insect & fungus. Never use the black tarry limb dressing. It also tends to cause rot & can prevent the tree from healing over the wound.