It varies man to man based on years of experience in market, investing style and many other factors.
People are putting nice explanation on your question so I thought to share my own experience of this microcap stock(will not take the name, but well discussed in this forum) I own. It was 8.12x for me in January this year,then this June market fall happened. I added 35% of my invested amount into it and reduced my gain, it is 5.2x now for me.
It came from my conviction on this company, long quarter by quarter study of it’s performance and future growth potential. I frequently hear this term “I am holding free shares”, people sell invested capital when some stock they own gives some good returns,as you mentioned in your query. But I don’t believe in this style. But again, it depends on man to man and their style of investing.
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