Lets say a particular stock goes way high, may be in bubble territory. Somehow someone sold at or near top. And then stock tanks. Since one sold and it went down but 10-15% in a day or a week, the person tends to play with it. They would buy just for the reason they sold at good price. Than there may be dead cat bounce, and they sell it again at profit. This pattern is very dangerous coz person tends to believe he is expert on that stock's movement. I have seen that lot of times and sometimes they even loose money overall after very nice profit, because sometimes they even increase position than they had originally. I have been there, done that long time ago and I am very careful not to do that.

Hi Manish, I have also played this game rather am still playing it. I play it in just 1 company, Kabra Extrusion technik. This co. was my first pick in my college days . I went long at 56, ate 3.5 as dividend and sold it at 112. Again I entered at 84 and sold it off at 117. Now I am againn long having entered at 94 and again I have ate Rs.4 as divvidend. But now I intend to stay put with it for some time... no more Yo-Yos... the balance sheet is looking good and the association with Battenfeld Extrisiontechnik AG with the latter having acquired equity stake in it, is making this stock for some better upside... Bit to be very candid, I have enjoyed this game... but also agree with you, most people simply get rid of good stocks with this style or get re-invested at a wrong time. Was planning to do another yo-yo in Balrampur chini having bought at 51 and sold it off at 152 in kess than a year. But after this post of yours, will wait for my re-entry.

Edited by Vivek Sukhani - 08/Oct/2006 at 10:28pm

The point u make @ emotional attachment is very true, its quite usual to fall into the trap of "this is my stock" or "this stock never makes me loose money". In such cases, when fundamentals change, its better to move on since there is no dearth of good stocks rather than clinging on to an idea whose time has passed!