How do you know when to sell a stock? Especially a profitable one?
I am up 110% on AMD so far and while it's great, I feel like I should take my winnings and run (reinvest in something else). I just cant seem to pull the trigger though. I do still believe in AMD though.
How do you guys know when to get out?
Videos
How much profit do I need before I sell a stock?
How can you tell when to sell a stock?
Should you ever sell stocks when they’re down?
I recently read Joel Greenblatt's "The little book that beats the market" where the author draws on Graham's value investing principles to purchase stocks of good companies that are undervalued. He developed a step-by-step process on how to purchase shares of 20-30 undervalued companies for a year and selling winners after holding them a few days more than one year and losers after holding them a few days less than one year (keeping in mind the capital gain cuts). It got me thinking about my portfolio and my question resulting from that was, if a stock is doing well and the company prospects are solid, should you still sell the stock? More generally, if the goal is long term investing (like Apple for example with a strong balance sheet and a solid market position and brand value), how long does it make sense to hold a stock before selling it?