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 Do u cut loss on fundamentally good stock ?, I mean Long term shareholder.

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TSIrresistible
post Mar 26 2012, 11:27 PM, updated 12y ago

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I would like to know do u guys CUT LOSS on fundamentally good stock ? Eg. CIMB , RHB

Or it is recommend to hold for a few months to years, since it will increase back to your price or even higher & u still receive a bit of passive dividend during the waiting period ?
foofoosasa
post Mar 27 2012, 05:22 AM

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QUOTE(Irresistible @ Mar 26 2012, 11:27 PM)
I would like to know do u guys CUT LOSS on fundamentally good stock ? Eg. CIMB , RHB

Or it is recommend to hold for a few months to years, since it will increase back to your price or even higher & u still receive a bit of passive dividend during the waiting period ?
*
Then why you want to cut loss at the first place?if you believe the stocks fundamentally won't change for a decade, then continue to hold it. Don't mix long term investing with trading, it is completely different strategy.Sounds like you made loss in trading and then forced to keep it as long term. I think this is very bad strategy. Do you understand enough the company at the first place?

This post has been edited by foofoosasa: Mar 27 2012, 05:23 AM
TSIrresistible
post Mar 27 2012, 07:07 AM

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QUOTE(foofoosasa @ Mar 27 2012, 05:22 AM)
Then why you want to cut loss at the first place?if you believe the stocks fundamentally won't change for a decade, then continue to hold it. Don't mix long term investing with trading, it is completely different strategy.Sounds like you made loss in trading and then forced to keep it as long term. I think this is very bad strategy. Do you understand enough the company at the first place?
*
I mean because most of of my traders friend, always CUT LOSS and invest in other shares even the co. is still fundamentally strong... eg. the price drop by 3-5%.

Thanks for ur clarification.

Yes, I do lost in trading, especially I playing a lot of penny shares . (Goreng counter) . I have try to stop it .
river.sand
post Mar 27 2012, 08:27 AM

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Ideally, we don't cut loss if we confident that a stock is fundamentally good. But 'confident' is the keyword. How confident are we? Easier said that done biggrin.gif
rayng18
post Mar 27 2012, 08:37 AM

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If it is fundamentally strong, usually I do not cut loss but to hold on unless it has a bad news on that counter that will have severe negatuve impact on its share price, then will cut loss and re-enter again when the bleeding is over.
foofoosasa
post Mar 27 2012, 08:55 AM

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QUOTE(Irresistible @ Mar 27 2012, 07:07 AM)
I mean because most of of my traders friend, always CUT LOSS and invest in other shares even the co. is still fundamentally strong... eg. the price drop by 3-5%.

Thanks for ur clarification.

Yes, I do lost in trading, especially I  playing a lot of penny shares . (Goreng counter) . I have try to stop it .
*
I think it is always good to cut loss from trading perspective. Even Fundamentally good can be defined differently from different people. Based on some simple ratio can be naive to conclude it is fundamentally strong.Sometimes the share price drop can meant simply over reaction, overvalue , or got someone has insider information. By the time the bad new is announce, basically the share price will drop according pretty fast though it may overeact ( even worse if you have wrong perception and not much confidence and research on the stock).

You can always re-enter anytime you want after u cut loss. My perspective is stick to your game and utilize your core of competence.

hk_loo
post Mar 27 2012, 09:10 AM

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cut loss and buy back at lower price also a good tactic
freddie
post Mar 27 2012, 09:22 AM

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that my friend, is not cut loss. it doesnt matter if you cut the counter when its price is lower or higher than the price you entered.

one needs to re-evaluate one's portfolio from time to time.

sometimes i cut my long term FA counters and switch to another for various reasons.
Icehart
post Mar 27 2012, 09:49 AM

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If you think you're holding fundamentally good counters, you normally won't monitor it for few months. You just buy and buy. Then wait for dividend cheque to come in.

I think you're referring to trading for capital appreciation. This is more of a short term investment since you would not hold for more than a year.
river.sand
post Mar 27 2012, 10:07 AM

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I am afraid it is not easy to cut loss and buy back at lower price.

Let's say I buy a stock at 1.00, and cut loss at 0.95. I tell myself, "I will buy back at 0.90."
Then, I go to climb Mt Kilimanjaro, and for a few days can't monitor the market. During this time the stock rebounds at 0.93. By the time I am back online, it is already traded at 0.97.
Question: Should I buy back at 0.97?

bryan5073
post Mar 27 2012, 10:49 AM

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How can one be sure a stock is really fundamentally good? hmm.gif
Yeapy
post Mar 27 2012, 11:54 AM

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When the fundamental change, it is good to cut loss and stay aside. Wait for next oppourtunity. For example, gloves counters used to be the darling in 2009-2010, but now the conditions are unfavorable anymore.
hk_loo
post Mar 27 2012, 05:44 PM

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thats why before you buy a stock, you need to have a plan

what sector to buy ...

within the sector, what the best counter to choose from ?

then when to buy, when to sell, when to cut loss etc

all within a plan

without that, you gonna fark up ...


holybo
post Mar 27 2012, 07:46 PM

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a strong fundamental stock can do averaging down. it is all depends on your holding power
berry123
post Mar 27 2012, 08:17 PM

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QUOTE(holybo @ Mar 27 2012, 07:46 PM)
a strong fundamental stock can do averaging down. it is all depends on your holding power
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betul... that's what i do...

TSIrresistible
post Mar 30 2012, 10:40 AM

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QUOTE(holybo @ Mar 27 2012, 07:46 PM)
a strong fundamental stock can do averaging down. it is all depends on your holding power
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what's the purpose holding so many units ?

Is it better to diversify or average down in 1 or 2 stocks ? Provided wit limited budget....
holybo
post Apr 3 2012, 03:00 PM

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QUOTE(Irresistible @ Mar 30 2012, 10:40 AM)
what's the purpose holding so many units ?

Is it better to diversify or average down in 1 or 2 stocks ?  Provided wit limited budget....
*
oh... usually i dont put 100% cash into my stocks 1.. always bullets are ready
reconer
post Apr 5 2012, 10:22 AM

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How about cut profit? I bought stocks at a low price, and previously it has gone quite high. But now, it is reaching a low and im wondering if i should sell it. Fundamentally good stock.
TSIrresistible
post Apr 6 2012, 05:05 AM

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QUOTE(reconer @ Apr 5 2012, 10:22 AM)
How about cut profit? I bought stocks at a low price, and previously it has gone quite high. But now, it is reaching a low and im wondering if i should sell it. Fundamentally good stock.
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Yes, better than "No Profit" or "even in loss"
john123x
post Apr 8 2012, 02:27 PM

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QUOTE(Irresistible @ Mar 26 2012, 11:27 PM)
I would like to know do u guys CUT LOSS on fundamentally good stock ? Eg. CIMB , RHB

Or it is recommend to hold for a few months to years, since it will increase back to your price or even higher & u still receive a bit of passive dividend during the waiting period ?
*
long term investor dont cut loss on fundamentally good stocks.

your probably a short term speculator speculating on fundamentally good stocks. thats why you need to cut loss.

This post has been edited by john123x: Apr 8 2012, 02:28 PM

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