Are you saying that going into any investment you don't know what your risk is? Or is it 100%. You are willing to lose all your money if the investment doesn't go the way you think it might.George$ wrote:
I guess I don't buy that as a solution. I don't see 'volatility' as a loss. I see selling below the buy price as a loss.
For the long term investor like myself (I am not a short term speculator), I cannot contemplate a 'stop loss' order - which if executed guarantees a loss. I don't sell on market volatility. I do sell to realize gains or because I have lost confidence in the company itself, in its fundamentals (and not on what the market thinks about it).
Just my two cents.
Have the fundamentals of any company in the market changed. When were you aware of the change and how has the price of that stock reacted to the change.
My experience has been that the price reacts long before the fundamental change is realized by the investing public.
Even if the long-term buy and hold strategy will show a better return in the long run (whatever that is). The fact that your investment could go to zero because the fundamentals change is too much risk for me.