Nice to know your viewpoint on this subject, BubbleVision!
You mentioned that value-investing involves stop-losses: Sorry, value investing is buying something at a price which is worth much more. Value investor would never apply stop losses.
It is all about identifying companies with "long-term durable competitive advantage", with proven management, and buying them cheap (during temporary bad news).
And about your view on currency market (which is the largest in terms of volume) or for that matter commodities futures, I have seen people lose their net worth in matter of hours. Futures markets were created for price discovery and hedging, but look at the way people trade on MCX/NCDEX, all sattebaji. Look at what carnage happened yesterday in global commodities, zinc, nickel, gold, silver....all the stop losses triggered? I'm against leveraged trading altogether.
My own view is that capital markets are most of the times irrational. And as investors we should try to take advantage of the situation. That's all.
I'm not against your opinion at all. I hope I have made point clear.
Edited by kulman - 28/Mar/2008 at 11:56pm