Pairing your losses is NOT the same as Trading
Demondoug got upset with me for revealing that I sold off my entire stake of DPS to buy it all back a couple days later. Personally, I did that with a lot of my long term investments...
It's call PAIRING your losses.....
For example... Had you bought into (HANS)....A stock DemonDoug prefers over (DPS) and is a great stock with a 1-hit wonder in MONSTER Energy Drink + It's Coffee derivative.... back when it was trading over $40 a share and sat there doing nothing but watching it freefall to as low as $20 (give or take).
Then in my opinion that is irresponsible.
Granted... Motely Fool doesn't believe you should care about freefalling stock prices because in the long term the stock prices will bounce back whenever you have a great company in your portfolio.
However, even MOTELY FOOL still believes that if you have reason good enough to think your stock is getting absolutely hammered and will continue getting hammered in the next few months like both (HANS) and (DPS) have had to deal with.... Then they do state that it is ok to SELL off your stake and buy back in lower...
They also say it's ok to sell off an investment just because the share price was driven so far unrealistically high that it would be foolish not to sell it off.
If you are a subscriber to Stock Advisor.... Sell off my DPS Stake around $16.75 to buy back $1+ less may or may not have been a good move on my part. But I personally prefer to get a better price for my shares.
Getting a better price for your shares by PAIRING your losses can also free up additional cash.
With (AMAT) I was able to have an extra 50 shares of that company in my stake my selling off my entire stake to buy back in at a cheaper price. This method works more than it fails for me and is something I plan on continuing to do.
So if (DPS) or (HANS) runs smack into an unrealistic Hedge Fund Short Selling Assault.... Why as a long term investor sit there and take it when you can Pair your Losses and come out of the assault with perhaps a larger stake of shares and more money on the sidelines?