Psychology of investing: When to sell?

[craigj]

i have read a lot about letting your profitable stocks keep running and selling your losers before eroding too much capital, and agree with the concept.
but how do you decide when to sell the profitable stocks ?

do you sell half at some point ? do you use a trailing stop ?
take MEO as an example bought in 11 weeks back, more than tripled in price, believe price will go higher in coming weeks, day traders trading around 3% of stock some days with trading ranges around 10% most days

when it is this volatile, but you believe in the stock what do you do ?

Normal Psychology, when this volatility is about, kicks in and says sell, but the psychology of investing says buy low sell high eg. dont panic

any thoughts from others ? both newbies and experienced

 

[Garpal Gumnut]

Re: Psychology of investing

Fear vs Greed

A good question mate.

I don't have an answer.

Some folk will answer with algorithms they have worked out over 1000's of trades.

gg

 

[beamstas]

Re: psychology of investing

i have read a lot about letting your profitable stocks keep running and selling your losers before eroding too much capital, and agree with the concept.
but how do you decide when to sell the profitable stocks ?

do you sell half at some point ? do you use a trailing stop ?
take MEO as an example bought in 11 weeks back, more than tripled in price, believe price will go higher in coming weeks, day traders trading around 3% of stock some days with trading ranges around 10% most days

when it is this volatile, but you believe in the stock what do you do ?

Normal Psychology, when this volatility is about, kicks in and says sell, but the psychology of investing says buy low sell high eg. dont panic

any thoughts from others ? both newbies and experienced

Has been quite a few threads on this, including one recently in the beginners lounge, which will be fairly easy to find.

Im not sure about "investing", as a term, or method.

Generally traders will trail a stop that suits the average holding time they are looking for. If trading systematically, your trailing stop will affect your average holding time.

There is no right or wrong. How long are you looking at holding?