corporate placement & share purchase plan, page-50

paul:

You don't get burnt until you sell at a loss. Paper losses are just that.

As for delusion (was trying to work out if you meant dilution, an entirely different thing), all I can say is that at any given time there will be rational reasons for holding, and rational reasons for selling. It entirely depends on your risk appetite, your individual circumstances and time frames as well as the objective assessment each person makes about the prospects of the company.

The worst thing you can do IMO is to give in to fear or impatience if you are a LT holder, if the fundamental reasons that you bought remain unchanged. To my way of thinking delay does not equal disaster. There are people who think it does, and they claim to be rational. Go figure.

There are always people who have an agenda in relation to a stock, talking it up or down depending on whether they want to sell on the high, or create an even cheaper entry point. To do this they will exaggerate fears or blue sky potential. Along with your own analysis, it helps if you are able to work out if anyone fits that description, and whether people have established credibility with their analysis or not.