Tai,
I agree wholeheartedly. However, if RS is strong, and "momentum" is strong, a stock can sometimes rise meteorically if the momentum players get on board. The float on this stock is quite low, so even moderate buying pressure can cause an upward spike. ST players like to see a 99/99 ranking and will get in for a quick "kill" of a few points.
Generally, I sell when a stock has hit my valuation limits. EPIQ has reached those limits IMO. However, I can see the strategy of putting in a stop loss at your fundamental limit (in my case 15.75). If the stock continues its upward momentum, say, reaching 18 or 19, you can always increase your stop limit. That way, you have at least guaranteed that your MINIMUM gain was your initial target, with an added bonus of maybe another 3-4 points.
One of the most difficult decisions is when to sell a winner. Its more important to prune your portfolio of dogs and let your winners ride. Yet, with a small stock like EPIQ, its always prudent to take some profit off the table. I'm learning how to be a more savvy investor and trader like the rest of the people on this board.
-Boyd |
