This is still about your charts, but I thought I’d start a new thread.
In the thread “Charting Frequency”, post 8392, you said: One and a half years ago, BOFI was up to $105, way ahead of itself. Over six months it fell gradually to a low of $65. All the news was great. I bought from $90 to $65, and back up too. It’s now at $92 and it’s PE is now only 19 or so. But every earnings report was better than great.
If you buy a stock and has great earnings quarter after quarter, but it’s stock price responds even more favorably, do you ever use your charts as a guide on when to sell?
For example: you buy Company ABC. Each quarter earnings increase by 15%, but it’s stock price increases by 25%. At some point it becomes over valued. Do you just ride it out, or is there some point at which you say “I’ve made enough money” and sell?
And if you do have some sort of rough guideline for this situation, could you share it? Do you have any examples?
Trying to pull the most out of our moderator
You can see my holdings here: http://my.fool.com/profile/TMFJebbo/info.aspx