---
title: "The most foolish and dangerous saying about stock prices"
type: "Topics"
locale: "zh-CN"
url: "https://longbridge.com/zh-CN/topics/38755356.md"
description: "✨ The Illusion of Bottom-Fishing and Selling at the Top "The stock price has fallen so much, it can't possibly fall any further.": This is the classic sentiment of a bottom-fisher. But the reality is, a stock price can fall through the floor. Peter Lynch personally experienced Polaroid falling from $140 to $11; even if you bought at $60, you'd still suffer huge losses. "I can definitely tell when a stock has hit bottom.": Bottoms are only known in hindsight. Two or three years after the bottom appears, you'll belatedly realize that the current "bottom" was just the starting point of the decline. "The stock price is only $3..."
datetime: "2026-02-17T06:32:10.000Z"
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author: "[好雨时节](https://longbridge.com/zh-CN/profiles/15877382.md)"
---

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# The most foolish and dangerous saying about stock prices

✨ The Illusion of Bottom-Fishing and Topping Out

​​"The stock price has fallen so much, it can't possibly fall any further.": This is the classic sentiment of a bottom-fisher. But the reality is, a stock price can fall through the floor. Peter Lynch personally experienced Polaroid falling from $140 to $11; even if he had bought at $60, it would still have been a huge loss.  
​​"I'm sure I can tell when a stock has hit bottom.": The bottom is only known in hindsight. Two or three years after the bottom appears, you belatedly realize that the current 'bottom' was just the starting point of the decline.  
​​"The stock is only $3, how much can I lose?": Price level has nothing to do with risk. Falling from $50 to $0 is a 100% loss, and falling from $3 to $0 is also a 100% loss. Low-priced stocks often have worse fundamentals and can fall even harder.

⏳ The Pitfalls of Waiting and Holding

​​"I'll sell when the stock rebounds to my cost price of $10.": The stock doesn't care about your cost price. Holding onto a target price after being trapped often leads to it falling to a despairing $2.  
​​"It hasn't gone up after holding for so long, there's definitely no hope.": Quality companies often trade sideways for years, showing a 'flatline' pattern. As soon as you sell, it might take off.  
​​"I bought a conservative stock, I don't need to worry at all.": There is no absolutely safe stock. Even utility stocks can plummet 80% if the company's fundamentals change.  
​"If it falls, I'll just hold it long-term.": If your only reason for holding a stock is 'I don't want to admit the loss,' then this isn't an investment strategy, it's a self-deceiving form of 'playing dead.'

💸 Fallacies of Mindset and Logic

​​"The stock price went up, proving my stock pick was so right.": Short-term gains might just be luck or a general market trend, not a sign of good stock-picking skills. Mistaking market-driven gains for your own stock-picking prowess is the beginning of a naive investor's downfall.  
​​"Look how much money I lost, I should have bought it back then!": Other people's profits are not your losses. Chasing highs out of envy will quickly turn you from a 'missed-out observer' into a 'loser.'  
​"I must catch the next IBM/McDonald's.": The 'next one' is always just a hype gimmick. Most 'next big leaders' on the market are castles in the air; if you want to buy, buy the real leader of today.

Peter Lynch

### 相关股票

- [IBM (IBM.US)](https://longbridge.com/zh-CN/quote/IBM.US.md)
- [McDonald's (MCD.US)](https://longbridge.com/zh-CN/quote/MCD.US.md)

## 评论 (1)

- **好雨时节 · 2026-02-17T06:32:40.000Z · 👍 1**: 💡A Clear-headed Guide to Investing​​Forget the cost:​​ Your purchase price has nothing to do with how much it can rise in the future.​​Establish rules:​​ Set a stop-loss line before buying and execute it unconditionally when reached.​​Think independently:​​ Others' gains are theirs, and others' los