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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: bruwin who wrote (57974)	9/24/2016 6:04:16 PM
From: Graham Osborn	Read Replies (1) \| Respond to of 78751

This should be pretty straightforward - you sell when the price you calculated before you bought the stock is hit. That's the "correct" answer. What people do in practice is a different matter. This is because the "when" of purchase and sale determines the actual return. I use technical exit points (as well as heuristic rules like "sell after a quick 15%+ pop"). For growth stocks the compounding factor substantially increases the margin of error in the valuation calculation - hence it may be better to buy and hold into the trend. That's what Soros called "being a pig" and Rogers called "trading a secular trend." That is not value trading per se but it is the way real money is made in this business. Currently the only stock like that I own is GOOGL, and unless I find better use for the funds or the secular trend reverses that will be a trade that takes 1-2 years minimum to play out (or I might buy more ;)).