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Politics : High Tolerance Plasticity

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To: kodiak_bull who started this subject9/25/2001 2:16:46 PM
From: chowder  Read Replies (4) of 23153
 
Perhaps someone can enlighten me!

I continue to see where people are willing to get into a stock early, willing to take a 20-25% paper loss, if necessary, to gamble that they can catch the bottom. I continue to see this type of thinking across all of the threads.

Buying a stock at 20 and seeing it go to 15 is a 25% loss. It takes a 33% gain TO BREAK EVEN.

My point is this! Metal Trader, KB, myself and others have continuously said to wait for a positive trend. Some are willing to take a 25% loss in order to catch a bottom, but then they're unwilling to wait, and possibly lose 15-20% to the upside, to insure the trend is on their side.

I'm curious as to why people are willing to take a loss to the downside, to insure they are in near the bottom and they are unwilling to give up half of that loss to the upside, to insure the trend has in fact turned positive.

da-puzzled-bum
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