Holding Period for Stocks?

By Anonymous Questions, May 1, 2013

This is a discussion topic or guest posting submitted by a Stock Gumshoe reader. The content has not been edited or reviewed by Stock Gumshoe, and any opinions expressed are those of the author alone.

What is your holding period for stocks? Do you sell upon reaching a profit target or wait for over a year for long term gains?

Also, do you follow stops – be it hard stops or mental stops in case some investments don’t work out?

Leave a Reply

2 Comments on " Holding Period for Stocks?"

avatar

Travis Johnson, Stock Gumshoe
Admin
4810
May 1, 2013 12:47 pm
That differs quite a bit depending on the investment, at least for me. Unless there is a specific catalyst or change I anticipate that will impact the company’s price, I usually assume I will hold it until the story changes or my assessment of the valuation changes. Some stocks I’ve held for a decade, other stocks I’ve sold within months — I tend to be patient, probably too patient, and I am definitely not a trader. I am not motivated primarily by tax avoidance, partly because a substantial portion of my holdings are in tax-sheltered accounts, so I don’t specifically… Read more »
Pete
Guest
0
Pete
May 23, 2013 8:47 pm
Your reply, Travis reflects very closely what I have learned through my own experiences over the last 5 years. I do think, to use a stop loss formulae blindly, has the potential to loose one, just as much money as it has the potential to save. Like yourself Travis, I do use, quite often a trailing stop order to either buy OR sell companies that I was intending to buy or sell anyway. What that allows is potentially a better or worse buy price but depending on how tight the trailing amount is (I use percentages usually between .5 and… Read more »
wpDiscuz