so interesting, exact same (good) problem over here. Average cost of entry at about $6 and now its ~25% of my active positions.
I set out a framework a few years ago that helps with this (used it most recently on IMF as well as XRO shares that I held from $20 down to $10 (double up re-buy at $23 as it rose)
basically when it becomes big like this then I watch the 52 week high. Then I set a stop loss at 25% of those all time highs. If it closes below that level it’s sell half. That’s the profit taken. No mucking around, no letting emotion get in the way - sell it, lock the profits, take the girlfriend out for dinner. It’s too easy to get greedy and go ‘well if it rises this much I’ll sell’ and every variation of that line.
this approach let’s you lock in the maximum gains as it rises past rational levels on the back of those who enter late and bid up the price. But it also lets you take some money off the table and enjoy your win.
The next stop loss is at 40% of the 52 week high. How many stocks drop 40% then recover to their 52 week high? Answer, it’s not many (yes, I’m aware APT did it recently)
APT Price at posting:
$24.29 Sentiment: Buy Disclosure: Held
