huge sellers on market - why?, page-21

Hunnini - You've just used the term "trading" followed by the word "investors". The two are incompatible.

Consider the case when one has bought into a company based on an analysis of the business fundamentals (i.e. sound business model, sound finances, good management and purchased with a big margin of safety compared to its intrinsic value). That is an investment.

There'll likely be instances where those shares fall 10%, 15%, 20% etc. below one's purchase price.

But nothing alters the fact that, if those exact same fundamental factors are still in place which gave rise to the original purchase, then the stock is an even better buy now.

So what insanity compels the investor to now become a trader and execute a stop-loss? An investor would be looking at buying more, rather than trading out of his position.

The concept of Stop-losses and Stop-profits belongs to that class of people who simply have not done their homework on the company in which they have become part owners.

With that approach, what right or expectation should they have to become financially successful?