My strategy depends whether I am trading or investing in the stock. If im trading, I would go with absolute profit or percentage rise. Once the stock has risen 5-10%, I prefer to take profit. Sometimes, if the potential profit is at least $500, I take profit too. It is always better to have earned less than to be a bag holder. If im wrong and momentum continues going strong, I might swing trade again if the stock still looks promising to climb and remain fundamentally sound.
If I’m investing in the stock, I would trim if percentage in my portfolio has exceeded what I’ve set so that I manage my risk. Of course, I may also buy back to balance back my portfolio.
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