The implications and conclusions of these two investing strategies are that the holding period of an investment is a primary determinant of investment performance and, therefore, justifies ignoring both short and long-term investment outcome determinant considerations and variables.

I am a long-term investor no matter what!.... Are you sure you want no-matter-what?

Undisciplined and unskilled investment advisors and investor's, especially long-term investors, often use long-term as an excuse for ignoring current investment realities and for not making necessary short-term investment decisions — I can make a reasoned decision to buy based on current and projected investment value and market conditions; but, I refuse to make a reasoned decision to sell based on current and projected investment value and market conditions.'

Categorizing investors in this manner can only obstruct investment performance as the investment holding period is being determined, incorrectly, by the profile of the investor rather than being determined, correctly, by the short and long-term behaviors of the financial markets and underlying investments.

The results of using such an investment strategy are that it can box an investor into an inescapable corner which can only lead to absurd and, very often, very expensive investment conclusions; such as, the opportunity for a realized short-term gain of 25% is inconsistent with a long-term investor investment profile and, therefore, cannot be taken. Or, another example, the erosion of capital in the short-term can be ignored because it will somehow take care of itself in the long term.

The fundamentals and performance of an investment, moving from short term to long term, should determine investment holding periods rather than the investor's investment profile which has nothing to do with the investment value of and investment timing for an investment.

If the reasons, expectations, and apparent timing, present at the time of purchase, have diminished significantly or have disappeared altogether, the logic of selling is the same now as was the logic for buying in the past.

Price management disciplines, such as stop loss orders, must be used by all investors all of the time when an investment is made and for the entire investment holding period:

• With the passing of time, short-term traders should continue to set stops close to the current price.
• Long-term Investors should set stops with increasing variances between current price and the stop price as an investment appreciates over time so as not to be too sensitive to short-term price changes, yet, to recognize that there is always a sell point in place to protect capital.

For example, a short-term trader and a long-term investor buy XOM on the same start date and @ the same price:

• Both must start with the same or very similar sell points.

• As time passes and, as in this illustration, as the price increases, the differences in the slopes of the stop sell lines (short-term red and long-term blue), as set by the investment advisor/investor, will allow the trader to trade and the long-term investor to be a long-term investor as long as price performance allows him/her to be.

• Both the short-term investor and the long-term investor achieve the most important objective of investing; to protect and to build capital; both in the short term and in the long term.

• Also, both the short-term investor and the long-term investor avoid the worst of all investment worlds' endgames; a disastrous and inexcusable decline in the value of capital, as illustrated @ GM above, where, without price disciplines in place (short-term red and long-term blue), still owning GM @ $20-$30, just hoping for the best, and, possibly, with little or no time to rebuild.