it just depends on why you selected it?
here are a few quotes from Warren Buffett.... .

If you aren't willing to own a stock for ten years, don't even think about owning it for ten minutes.

Should you find yourself in a chronically leaking boat, energy devoted to changing vessels is likely to be more productive than energy devoted to patching leaks.

Rule No.1: Never lose money. Rule No.2: Never forget rule No.1.

I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years.

yes, u r right...only GOD know what one would react when the mkt are down, my 1st experience on my UT crash was in 2001....tech bubble burst big time. that time dun know abt bond....just hentam all in 1998 ~ 2000 into tech, growth, telecom, global leaders and all others...
burst 2001...UT down..worst case was 80%...
me ...stick to plan??? where got plan...no more monies, job wise was insecure....layoff was every where...OT cut.
was thinking of surrendering my insurance..but then was told the cash value is to little. luckily, i hv a few some surplus $ and made a daring decision to buy a few small cap stocks. 2 are bad till now..3 are VERY GOOD.

when the mkt are down...YES,..i too panicked.

signal?? how to identified? at that time everyone was enjoying the profits.... there are industries leaders like Bill gates and Alan Greenspan said that the tech stock was too high.....it did not crash immediately...i think only after 10 mths....just imagine if the Thai mkt can go up +40% in a year....so can m'sia stock, i think that is what is happening to allot of ppl mind right now...?
i remember during the good yr in i think 1992 ~3 the m'sia stock mkt was soo good until my remisier does not have credit to buy for me....every auntie & uncle who buy stocks make $$,    then it crashed for a while a few years later....  
so i would appreciate yr advise on how to identify the signal....and also what is in the written plan...  

yklooi.. you have had few times experience on major downturn. Can you share with me roughly it takes how long from peak of KLCI index to drop 10%, 20% then to rock bottom?

I am putting a FORCE rebalance to a defensive portfolio (20% EQ, 80% FI) if my peak value in my portfolio to drop 15%. Not sure if this figure is reasonable?

Pinky also ada the concept liao.

Bottom line - IMHO, it's our "personal economy" that we shd be triggered, NOT the world's or markets' economy triggers.

eg.
based on Pinky's concept of:
Planned Asset Allocation to hold (AA)
50% equity: 50% fixed income
AND rebalancing if lari 10% of planned:

1. Trigger for FORCED rebalancing is when actual Equity holdings is
a. ABOVE 50%*(1+10%)
or
b. BELOW 50%*(1-10%)

2. Based on Trigger 1(a.) - he can forceably SWITCH OUT / SELL Equities down back to Planned 50%
or if not too gung-ho, perhaps  SWITCH / SELL Equities down to 52.50%, just in case rise even higher/more value to sell

3. Based on Trigger 1(b.) - he can forceably SWITCH IN / BUY Equities up back to Planned 50%
or if not too gung-ho, perhaps  SWITCH / SELL Equities up to  47.50%, just in case fall even cheaper/more value to buy

Reasoning above:
All our holding's "value" is already determined by markets' forces.
Why hunt one by one market & asset class to determine the trigger?

A more complicated version of the above = add in sub-asset allocation & foreign vs domestic allocation

Just a thought 

eh - BOMBASTIC ka?
simple common Yinglish lar - bombastic will mean i bring out shake(my)spear thee thy thou spake etc 

3.  Never sell equities in a down market. If your funds are allocated correctly, you should never have a need to sell equities during a down market cycle. This holds true even if you are taking income. Just as you wouldn’t run out and put a for sale sign on your home when the housing market turns south, don’t be rash to sell equities when the stock market goes through a bear cycle. Wait it out.

Sounds more like "Forced cut-loss" / "flight to safety", rather than "forced re-balancing". Re-balancing - "to bring back to balance or planned" right?
anyhow, semantics only, pardon my Yinglish Nazi-sm 
IMHO, the concept works fine... IF kaka really hits the fan, ie. a drop of 40% or more.

------
What if AFTER one cuts lost
eg. shifting from Equities 50: Fixed Income 50
to a defensive stance of Equities 20: Fixed Income 80 triggered by a mere 10% fall in equities
AND
the equity market rises, like in mid-late 2011?

Using similar concept of cut-loss / flight to safety but even upping the trigger to 20% fall in equities
same kaka as above or may be even worse in terms of cost of switching + opportunity lost
------

My point of thoughts are:
1. How many times, when the equities market falls, it fall BEYOND 30%?

2. Being a worker (ie work for $), my major point is that i'm just allocating $ into a few asset classes (and regions).
Thus, like allocating my grocery shopping $.
eg.
For meat - i'd buy chicken if it's cheaper/more value VS lamb, or vice-versa
thus, translating into investment vehicles,
i'd buy equity funds if it's of more value VS fixed income funds.
When will A be of more value than B?
When A's cost (ie price) has fallen enough.

Just a personal thought concept yar - investing and trading is a mix of art & science. No perfect right/wrong approach 
If it's just art - i'll be dead in the water (my EQ sucks  )
If it's just science/maths - all the ivory tower professors & accountants will be multi-millionaires

FSM Recommended Portfolios have switched out from OSK-UOB EM Bond and RHB Asian Total Return in favour of Hwang Select Income...interesting

https://www.fundsupermart.com.my/main/inves...ntportfolio.tpl

Track by top ups? Means the 1 year period with exit fee duration is reset again and gotta wait 1 year to withdraw or not will be charged?

you checked this info with FSM?