How investors should think vs. how they do think

Investors always believe that it's a great idea to sell sliding stocks, but they never think of true implications.

When you sell investments just to save face on the principal it ends up coming back to bite you. And this is not a case where the bark is worse than the bite.

If someone were to tell you that a few houses in an upscale neighborhood were on sale for 50% off, what would you do? Assuming you had the liquid capital, you would start picking off real estate lots like sitting ducks (during hunting season)! Now that we are on the same page...why is it that when stocks are cut by 50% in a "down" market; no one buys and everyone sells? Seems a bit counter-intuitive don't you think?

Make sure you think about this the next time great stocks such as Apple or Amazon are on "sale"(the latter of which one of us made over $100 in four hours last fall after buying super low).