Missing a stock rally is just a missed opportunity. Great opportunities are everywhere as long as you have an eye for that. We might have missed the boat on a certain stock but there is always another stock which has similar if not greater potential. Better still, it might not even be a stock after all! It could be another investment vehicle. However, being caught in a downtrend is kinda bad in my opinion. Although one might say it's just paper loss as long as you don't sell it, the truth is your money is stucked in the stock market and many of us are too reluctant to let it go or cut loss until it spirals all the way to a pathetic price. That being said, I'd rather miss a rally then being caught in a downtrend.