Quick Lesson: Cut loss, is that trading or investing, FA or TA?

I've created a controversy with some of my readers by practicing a "cut-loss" at the 7-8% point on my China Farm holding. So is that trading or investing? If the fundamentals of a company is that good, why be shocked at the 7-8% loss in shareprice?

Well, to recap. My China Farm shares were bought at $0.995, and sold at $0.915, for a 8% loss. If i was still holding on to my China Farm shares, I would be looking at a -25% paper loss, which would require a 33% rise to break even.

Emotions have to be taken out of investing. Yes, the ideal state will be to buy a fundamentally sound company and hold on to it through thick and thin. However, I wouldn't think its practical for relatively small investors like me and you (well unless you have a $5,000,000 portfolio, i'm talking about you).

When i was talking about "traders" and "investors", I'm basically talking about "traders" who practice Technical Analysis, who sits infront of a chart to find the pivot point and potential breakout point. "Investors" are fundamental analysts who look at the financial statements and research information to dictate their choise of investments.

Having a cut loss point of 7-8% does not make you a "trader". It can be a capital protection technique for "investors". Like me.