The later would be an interesting topic, I suspect for stocks...

The later would be an interesting topic, I suspect for stocks with a Market cap in excess of $200m its of little relevance (remember SRF was over $400m a few months ago) and its more about stop losses, automation and sentiment I think.

Most people starting out though do their best at knife catching and it takes a few failures and time to look back and consider. Then there is the realisation that you might have been right all along, but if the rest of the market disagrees, who will you sell your undervalued shares to?

They are worth nothing if the market (and funders) don't agree, people with more money than you (PE firms, lenders or the banks) will swoop i and pick up a distressed asset leaving holders forced to crystallise their losses.

Or, it will rocket back up.. but that could take years and isn't without potential risk and has guaranteed opportunity costs.