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  • "The fund manager can sell shares when it starts to drop, and hopefully growth in the other companies offsets the (hopefully small) loss you took before the manager sold." You seem to be endorsing market timing here, yet rejecting it in the next section. Stop loss is a poor strategy that gives a false sense of security and encourages herd behavior. Commented Jul 26, 2021 at 17:09
  • @Acccumulation - It's not timing the market to say - "the risk of failure for this company has changed since I initially invested, I should change my position." That's prudent investment.
    – codeMonkey
    Commented Jul 26, 2021 at 17:18
  • If you think you know better than the market what the risk of failure is, that's market timing. Commented Jul 27, 2021 at 16:42