Riding winners is like riding tigers. You are too scared to ride, too scared to get off.
I guess the simplest solution is to follow an objective parameter like say 30 week moving average. This will get you stopped out once the major trend reverses… But here too there can be false breakdowns. So we have to learn by experience.
If you follow fundamentals, it makes sense to keep riding till the earnings trajectory maintains the same angle. Say a 20% CAGR valued stock grows at roughly 15-25 CAGR, 30% CAGR story keeps growing at 25-35% CAGR or near about and so on.
There is no holy grail for riding fast growing companies. We have to play it by the ear and keep learning on the go.
| Subscribe To Our Free Newsletter |
