First of all congratulation on landing big winners in your portfolio, and having the patience to hold on to them.
When to sell is often a difficult question. You don’t want to be too early, you don’t want to be too late.
If you are a fundamental investor, then you need to monitor the story from time to time and keep a track of growth. Once growth stops, or slows down in comparision to price valuation, an exit should be contemplated. This is easier said than done. But one can keep track of things by monitoring quarterly numbers, concalls (if they are being done), scuttlebutt etc.
For guys following technicals, I think till now the simplest method I have seen is to follow the 30 week moving average and sell on a conclusive breach of the moving average. Usually a stock during its upmove may test the moving average a few times, but as long as the trend of the moving average is up, one can hold on. Or else look out for signs of any weakness in stock price or some specific bearish pattern, say on candlesticks, or some visible patterns like head and shoulders breakdown, or double top breakdown etc.
There is yet another class of investors who are fond of making their holdings free and keep riding them. I am not in that class of investors.
Subscribe To Our Free Newsletter |