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I own 2 stocks that I consider to be "story stocks". That is stocks that are on the cutting edge of a particular technology which, if sucessful, could propell the stock up tenfold plus. My problem is that with a stock like this, how does one decide when the momentus rise(10x plus)is nearing an end. By way of example, AOL could have been bought mfor less than $1 at one time, and then rose to $80+. While I don't expect to sell at the high, I'd rather not sell at $5 only to watch it rise to $25!!!! Any advice?
Remember the adage that, "Bears make money, bulls make money, but pigs get slaughtered."As a consideration, sell it off in pieces. For example, if it doubles, sell half. In that way you get your money out and are playing with the house's money going forward and you protect yourself from a very rapid drop in the future. Other formulae could also be used but the intent is that you are protecting your gains while still participating in future gains.Besides, you keep bragging rights if it goes to $80 and can say you made money if it goes to $1.Bob
I own 2 stocks that I consider to be "story stocks". That is stocks that are on the cutting edge of a particular technology which, if sucessful, could propell the stock up tenfold plus.You may want to look through the posts on TMF's New Paradigm Investing discussion board:http://boards.fool.com/Messages.asp?bid=114933New Paradigm Investing focuses on "...issues relating to technology investing and new economy (so called new paradigm) companies, those that are leading the build out of the internet," but they often discuss other high-tech stocks and technologies.David JacobsTMFDj111
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