I am extremely new to trading, and have recently entered a trade based on some very simple fundamental analysis. I was looking for stocks that were relatively cheap <50c and found that many of them were making losses. I kept going through loads of companies until i finally found one making profit, and increasing profit from previous years. It looked healthy with its debt levels, its p/e ratio was low in comparison to the sector, roe was great. I decided to buy it (SDI) and in two weeks it went up 30%.
So now, with this being my first stock that has made such a huge increase, i dont know whether i should hold or sell. I originally wanted to invest in this stock for the long term as it looked quite healthy but 30% is quite an increase and i was just wondering how others gauge in when a stock goes from under-valued or over-valued. Its p/e ratio is higher than the industry average now. Also note that in past 52 weeks it has increased 200-300%!.
Also, with fundamental analysis, is it wise to keep track of all announcements made by the company, and what kind of news can affect the stock ? where can i obtain this news ? Right now im just basing all my knowledge on its financial reports which is more backward looking, rather than whats happening at this point in time.
I realise each individual company is different and there probably isnt a "right" answer to my question, but right now im quite new and the money isnt as important as the learning part of it. So i just want to know, at this point, what signs should steer me to selling at a 30% profit, or what signs would steer me into holding, hoping for a further increase ?