When do you take some money off the table and when a stock is on a good run, do you add some more or just sit tight? I am holding for the long term.
A: Thanks for the really good $64 question.
There are a couple of old adages in markets: “cut your losses and let your profits run”, and “you never go broke taking a profit”.
There is truth in both.
I think that you also need to recognize that it is really hard to pick tops or bottoms. So my suggestion is that while trying to let your profits run, take a little off the table (maybe 25% to 33%) when you start to feel that is has run too hard. And if it continues to run hard, take some more off the table.
There is obviously no right or wrong approach to this (pleasant) problem.
