Riding a multibagger is a journey which will involve many small detours. There will be phases when stock price will go up sharply and then take pause for weeks/months, usually till earnings or positives catch up and then resume the journey.
But we cannot paint all journeys with same brush. We have to learn to be flexible in our approach and its not like One size fits all philosophy. For Warren Buffett and Charlie Munger fans, the basic premise is buy right and sit tight. And that too works wonders for someone who has the temperament for it. I have seen such approach in a lot of investor friends, who often buy and just sit tight for years without bothering about the volatility. And they also make super returns.
The other approach is the techno funda approach which involves a bit (or sometimes a lot) of churn. Its like a business with big asset turns. These kind of businesses can get away with lower margins. Similarly guys with above style, if they can get their calls right and make the most of their right calls and cut their losses quickly also can deliver superb returns.
Personally I prefer to sit tight on my long term picks while continuously monitoring the newsflow/charts on regular basis, but do not get flustered too easily by short term gyrations.
Usually when stocks run up too fast, say 50 to 100% within a matter of days or weeks, there is bound to be a pause. But if the earnings keep chugging along, the stock price will not nosedive. It may go sideways to mildly down, but we can manage to hold on without too much anxiety.
A recent example has been Guj fluoro stock. Basic trend is up but it is interrupted with short term corrections of varying degree. There will be many more examples of it.
So we have to take a call individually in each company based on how we analyse the company rather than evolve a blanket strategy to deal with these things.
The one situation where I would book partial/full profits would be when there is a parabolic move and the stock is in the news everywhere and there are research reports on it floating around and a lot of guys come on TV or other media and start recommending even after it has gone up a lot.
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