Who is a long term investor?

Please guide me:

When market is going up and your stock also goes up so should one book profits at regular intervals?

Who is a long term investor? Does a long term investor doesnt bother even if he is on a good profit and doesn't sell his stock?


Example: Suppose i buy a XYZ at 570 and I have already decided that I am a long term investor so at this current price of 685 ,though i am in profits will a long term investor not sell the stock?
Should he still resist temptation of booking profit fearing that the stock price may even go down below his selling price and wipe out profits?


I am confused.

Kindly advise.

Regards,
Nilesh

 

IMHO question to be asked is whether stock is overvalued or not. If stock is posting good profits at 25% every year and it has good management, debt-free/ low debt, strong product etc why you want to sell such a stock. Better to wait for dips and buy more of such stocks. But if stock is a dabba stock which is going up because of some news / manipulation or management is not good etc better book profits soon. So all depends on fundamentals of stocks and it cannot be answered just like that. If you sell good stock in short term you may miss multibagger gains in long term IMHO. Better to think carefully before buying and selling stock.

 

OK But take an example:

If i buy a stock at Rs.100 and it goes to 210 in 8 days.Everything is good all the fundamentals are good. Then at this situation should i book profit?

OR

If the stock again comes below my purchase price i.e. in this case say it it comes at 90 then should i buy more?

Is this what you intend to say?

Please clarify.

Regards,
Nilesh