Holding Period for Stocks?

By Anonymous Questions, May 1, 2013

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?

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2 Comments on " Holding Period for Stocks?"

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Travis Johnson, Stock Gumshoe
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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
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Pete
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 »
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