QUOTE(TC-Titan @ Oct 5 2015, 09:24 AM)
On the last part, it can be subjective...
U won't know from one qtr result or from sudden change in price patterns when there is no announcement on whether how u invested was wrong or not.
When people invest for long term, they should have some compelling reason (conviction) to invest. Out of the blues, when the market decide to mess around with u via a whiplash or orchestrated u-turn for the insiders to accumulate or if there is something brewing and about to announced soon, there is simply no way for u simply say your judgement was a wrong call until u receive further info to support that basis.
So normally, people who suddenly see 10 to 30% negative unrealised loss, will always either observe what is happening or accumulate more on weakness.
When things really go north 30% above losses or when the 2nd qtr results really confirm shit is happening or when there are plenty of news sprouting out everywhere that there is real shit happening, then the decision to cut-loss or to average down further is even more challenging. Put in money to a potential major falling knife or save your bullets for another rainy/shiny day?
But with that said, I think to avoid all the above drama, the best is to just be discipline and cut-loss when it has reached your preferred threshold. Go back in again at lower prices only after reassessing the whole situation objectively whether it is still worth the investment.
Firstly ... everything is ALWAYS subjective.
I am just sharing my poison.
You have the right to seek your own poison and antidote.

Yes, quarterly results can suddenly change.
It's up to you to interpret what you want to do with those set of results.
It's up to you to decide if it's a one off or if the changes are permanent or if the weakness could be slightly longer...
then you decide what you want to do with your trade or investment.
But if it's due to say market weakness or currently our ringgit and economic issues...
then you have to ask yourself...
why didn't you include this in your RISK ASSESSMENT?
QUOTE
When people invest for long term, they should have some compelling reason (conviction) to invest. Out of the blues, when the market decide to mess around with u via a whiplash or orchestrated u-turn for the insiders to accumulate or if there is something brewing and about to announced soon, there is simply no way for u simply say your judgement was a wrong call until u receive further info to support that basis.
Well I sort of agree.
But remember you are MASTER of your own 'investment'....
yes?
Don't you want TOTAL CONTROL?
or do you want to trust the faith of your investment with Mr.Market?
Yes, sometimes it can happen like what you had just described.
I agree.
But this is the vesy fine line between GOOD investors or poor market players who think they are investors!!
Judgement calls are not easy to make.
And it gets EXTREMELY blurred when one has vested interests.
For example...
AirAsia.
They buy at 2.50.
Cos those market sifus says 4.
Then they kena..
Soon it falls to 1.50.
How?
Then it falls to 1.00.
And then less to 0.80.
And because they have vested interests...
and they sort of trust what they see (don't do this.

)...
cos everytime they fly...
AirAsia always so many people....
So they keep telling themselves it is good....
How average down all the way?
Yes... judgement calls are difficult...
and remember...
End of the day...
NOT everyone makes money from the market....
..... yes... stock market game is not as easy as many shouts it is...
they have forgotten that they were (I say 'ARE') playing in one GREAT BULL MARKET!
To AVOID all these dramas?
You take a step back....
Not everyone can make judgement calls...
IE.... not everyone can be an investor...
and not everyone can be a trader....
this is why it is so important...
you need to know.... if you can be a trader or an investor.