Hello Sachin, I had similar thoughts and the decision to sell has been very very tricky for me. I am fairly new to the market, got into direct equity only during the lock down. In the three years of holding 19 stocks I have sold only once. I have watched my portfolio go up and then down all while sitting on the sidelines.
I think what you are saying is close to what momentum investing is all about. You book profits and then re-invest in the next company that has momentum. And you cut your loses early. You book profits only when the stock is losing momentum. Do look into some momentum investing strategies.
I did some back-tests and what I found is that momentum investing will work only if you commit to a strategy. You cannot do it a little here and there, you have to stick to it and then it will beat the index. This is not for me, at least not at the moment, so I am back to sitting on the sidelines.
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