Should I seel a stock after 50% gain?

Hello everyone -

I tried trading in the past and was never successful.

Recently I added skills on fundamental analysis and started investing. One of the stock I bought is now trading at a price 50% high within just two months time. Should I sell now?

I recently started trading to be like a investor(atleast a year on each stock so that no tax has to be paid on profits). But now I am confused what to do when some stocks show solid profits in short span.

Need advice from seniors, what is the right strategy?

Thanks a lot - I trade in Indian market(NSE and BSE).

franklinc said:

One of the stock I bought is now trading at a price 50% high within just two months time. Should I sell now?

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The answer to this question shouldn't normally depend on the percentage increase in the stock since you bought it. It might depend on a very large and variable range of possible factors, but that isn't usually one of them.

The question for you is: is this a stock you'd buy, at its current price, according to whatever your own stock-buying criteria are? Because if you decide to keep it, that's effectively what you're doing.

The Trend is your Friend. that rule applies to whatever you trade, and if you day trade or a longer term investor.

and don't get Greedy -- pigs will get slaughtered on Wall St.
don't try to milk the cow for all its got...consider taking a profit when you're in that zone.

alexaherself said:

The question for you is: is this a stock you'd buy, at its current price, according to whatever your own stock-buying criteria are? Because if you decide to keep it, that's effectively what you're doing.

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that sounds very good. looks like I need to do more analysis.

lawrence-lugar said:

The Trend is your Friend. that rule applies to whatever you trade, and if you day trade or a longer term investor.

and don't get Greedy -- pigs will get slaughtered on Wall St.
don't try to milk the cow for all its got...consider taking a profit when you're in that zone.

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exactly!!!! even I thought so, just waiting for a year and then if everything comes down...

Exit part of your position to lock in profits and let the rest ride. If price falls below the point of where you exited, sell the rest.

You cannot decide whether you should sell it or keep it based on a percentage change in price. There are a lot more factors you should consider. Follow the trend.

Like the previous responses suggest you cannot determine your exit point based on the percent price change. You need to determine the trend. If you are worried about an immediate reversal and the potential of losing your long-term profit its worth using an oscillator or some MAs to gauge the immediate prospects of the stock. You can also consider exiting a portion of the position if the trend seems unclear in order to guarantee some profit.