It's funny how you're getting so hung up on a word. Here are some definitions from various on-line dictionaries:
capitulate:
"to give up all resistance"
"to surrender unconditionally"
"to give up resistance"
Now when one buys a stock one hopes the stock price goes up. But often it goes down. Naturally one is inclined to hold the stock and hope it goes back up, nobody wants to realize a loss. But sometimes the stock keeps going down, and down, and down. This is especially likely with a small start up that has no earnings, where a few years down the road the threat of bankruptcy looms if they can't create a product with enough customers in time. Eventually the price may reach a point where the desire for capital preservation becomes paramount and one gives up resistance to realizing a loss. One surrenders to the realization that the company's prospects aren't at positive as one had thought. One capitulates, and sells the stock at a loss.
I am using "capitulate" in its ordinary sense, not the way some chartist would use it to describe a stock chart.
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