Is this a joke? Stop loss? What kind of theory is this? If you...

Is this a joke? Stop loss? What kind of theory is this?

If you think a stock is cheap now and you bought it at 60cents and the stock now fell to 54cents, instead of buying more you sold? Are you crazy?

How about a stop profit? If a stock rises by X% then you should sell. Since it's not cheap anymore if the price has risen. Unless of course you believe you can predict the bigger fool who will come in to keep on buying even though the price is already too dear versus the company's future earnings.

Your example about Slater is very illogical. A guy who bought Slater at $8 should still be holding at 60cents, since if he is willing to hold the stock at $8 then at 60cents it's a bargain. The thing he has to blame is not the lack of stop loss, it's that he is an idiot for buying Slater at $8 when Slater has a huge debt and a huge P/E. At least Bellamy just has a huge P/E and no debt.

Only logical reason one would sell a stock if the price falls is that new information or thinking allowed you to reprice the stock such as bankruptcy risk increasing or earnings outlook weakening, or you need the money for another purpose such as an even cheaper stock or other spending needs.

At this price, even if no one wants my Shine shares I am happy to hold it knowing that bankruptcy risk is very low and estimated earnings is very high versus current price that I've paid. I can make money two ways, through selling it to someone else at a profit, or continue to hold and take the future dividends. The second way is my back up if my analysis is correct. Selling it just because the price tanked to 20cents with no apparent change to earning prospects and bankruptcy risk is simply ludicrous.