Lessons Learnt, page-10

If you are a trader then I agree that taking profit is a good idea, but if you are an investor then it is not so wise to do a lot of churning. You should never hold a stock to get the CGT discount, but I think it is wise to choose your investments on the basis of the long term. I will sell out early if the market goes crazy and runs a stock well above what I think is the true value, or if what I expect to happen doesn't happen, but I try to avoid trading in and out of the stocks I hold.

I guess the bottom line is don't use the CGT discount as a reason to not sell, but as a reason to buy.