In a concentrated portfolio investment style, getting capital for fresh ideas is a difficult thing. Exits are mostly based on either targets getting achieved, or stop losses getting triggered. Stop loss can be in form of price stop or time stop. As you said, if I find that a stock does not move in the desired direction inspite of giving it enough time, I often start lightening positions in those names gradually and that is what provides capital for a new idea. Other times its from selling an over stretched position.
Typically in my personal portfolio, I hold around 8-10 stocks. But if I play a sectoral theme and have a basket approach, then I consider the 3-4 positions as a single entity for the sake of simplicity. If I consider these positions seperately, total would at times be 12-15 at max.
Regarding allocation, at the time of entry I usually go max 20% based on purchase price. Usual starting postion for medium to long term techno funda positions is around 7-10%, whereas pure technical short term bets allocation is around 5%. Around 50-70% allocation is towards first 5 medium to long term ideas. Rest is in rotating sectoral/technical bets and this depends upon market strength. As of now my highest holding is in HBL power and lowest is around 3-4% in small psu banking space where I have created a basket based more on technical picture. The latter technical basket has clear cut entry, stop loss and targets defined. I do this before hand but many a times modify my strategy based on the price moves.
@siyaram7 My views on exits in stocks that have gone up a lot has been discussed in the 52 weeks high thread in response to a question related to ITC. I won’t like to go into individual stocks and give recommendations to buy/sell. I have discussed what I feel can be an objective strategy, but could be wrong.
@MUKESL5C I don’t track bectors, talbros.
@Shakti_Srivastava I dont track vimta ( used to track it but not tracking it anymore after exiting it) or windlas.
@rjs391 I don’t track Atul ltd. I feel chemical sector is the one sector that was a fancy of markets not so long ago and as mentioned many times before, once a sector loses its fancy, it takes a long time, many a times many years before it makes a comeback. ( my views and I could be wrong, and don’t consider this as a recommendation, only as a view based on experience. )
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