Not at all investors often suffer long period of loss there is even a big investor that says something like this in the spirit "I know that I chose the good stock when my stomach gets hit". I repeat one of the most important recommandation of investors (read Buffet if you are not convinced) is to NEVER SELL WITH LOSSES so they NEVER CUT A LOSS because it IS THE FRAMEWORK to use TIME as with TIME there is a near 100% PROBABILITY that the stock will return to its FUNDAMENTAL if the fundamental has correctly been judged - so the problem of being a good investor they can fail but they can tolerate some misjudgement of course nobody is God. So stocks like Techs are generally excluded from the list because asserting their fundamental is generally difficult.
This debate shows again the herd mentality: because we are all traders including myself, most of us refuse to open his mind considering only the existence of other framework.
Instead of
"Anyone can pick stocks and hold all the losers. I think you need to read some quality material on proper investing."
it would be rather:
"Not anyone can be a good stock picker" and like trader an investor which master stock picking knows it and will be able to hold losers to become a winners whereas a bad stock picker will be like a novice trader: a chicken who will be frozen with fear. So the PREMISCE of using an investor framework is to be able to be a good stock picker, not on short term but on long term (using fundamentals evaluation criteria). Chosing for short term is the work of traders. And as I said one is the prey of the others so the stock selection should differ.
More generally the CONTEXT notably THE sometimes HIDDEN PREMISCES of an assertion are the MOST IMPORTANT THING to consider. Saying that cutting losses is good or bad should have had no sense if one doesn't refer to the context. Taking context into account is the characteristic of human intelligence compared to machine : the importance of context recognition does even now belong to the most advanced research in neuropsychology (I have already posted a reference book on that from Professor Gerald Edelmann I have the title in French - Comment la matière devient Conscience (How materials becomes Conciousness) - don't remember the true title in english since it is not the same than the title in french).
This debate shows again the herd mentality: because we are all traders including myself, most of us refuse to open his mind considering only the existence of other framework.
Instead of
"Anyone can pick stocks and hold all the losers. I think you need to read some quality material on proper investing."
it would be rather:
"Not anyone can be a good stock picker" and like trader an investor which master stock picking knows it and will be able to hold losers to become a winners whereas a bad stock picker will be like a novice trader: a chicken who will be frozen with fear. So the PREMISCE of using an investor framework is to be able to be a good stock picker, not on short term but on long term (using fundamentals evaluation criteria). Chosing for short term is the work of traders. And as I said one is the prey of the others so the stock selection should differ.
More generally the CONTEXT notably THE sometimes HIDDEN PREMISCES of an assertion are the MOST IMPORTANT THING to consider. Saying that cutting losses is good or bad should have had no sense if one doesn't refer to the context. Taking context into account is the characteristic of human intelligence compared to machine : the importance of context recognition does even now belong to the most advanced research in neuropsychology (I have already posted a reference book on that from Professor Gerald Edelmann I have the title in French - Comment la matière devient Conscience (How materials becomes Conciousness) - don't remember the true title in english since it is not the same than the title in french).
market looks a bit toppy for the next lil while so why not buy COH at 45