When one of my positions surges by 20%, it’s tempting to take the money and run! A profit is a profit after all. But another part of me wonders if this rally is just the start of something bigger. Ideally ...Read more
When one of my positions surges by 20%, it’s tempting to take the money and run! A profit is a profit after all. But another part of me wonders if this rally is just the start of something bigger. Ideally we’d like to sell at the exact top and then buy back in at the bottom – though that’s easier said than done in practice. At the end of the day, there are pros and cons to either decision. My advice would be to have a strategy in place beforehand based on your investing goals and risk tolerance. Then when it happens, stick to the plan and don’t second guess yourself! But I’d love to hear what others in the forum think. What’s your approach when one of your stocks jumps 20%? Where do you draw the sell line versus the hold line? Let me know your strategies below.
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There's no definitive answer, as whether to sell or hold a stock that has increased 20% depends on your individual investing strategy and the specific stock itself. Here are some factors to consider: Investment timeline - If this is a long-term investment, it may make sense to hold and let the positRead more
There’s no definitive answer, as whether to sell or hold a stock that has increased 20% depends on your individual investing strategy and the specific stock itself. Here are some factors to consider:
As a general rule, letting your winners run is often a good strategy. But regularly reassessing positions and selling or trimming when prudent is also important. There’s no single rule that applies to all stocks at all times. Assessing each individually is key.
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