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No. of Recommendations: 17
Wolf, emotions can be the most challenging aspect of investing because you’re dealing with probabilities and the unknown. HP Lovecraft once wrote, “The oldest and strongest emotion of mankind is fear, and the oldest and strongest kind of fear is fear of the unknown.” It may seem like an odd quote for an investment forum, but it certainly applies. Selling out of fear is almost always a bad idea, especially if there’s no news to warrant it. There are a number of ways you can potentially deal with it.

First, if your position is making you lose sleep at night maybe it’s too large for comfort. Only you know if that’s true.

Then, if your stock has run up a lot as it did in your case and you’re afraid of a correction why not simply trim it a little? At almost 100% profit, you could’ve even taken your initial investment off the table and essentially have a free position. At least then you could still participate in future gains.

JP Morgan was once asked what the market would do. His response was “fluctuate.” No one knows what a stock will do other than that, but if you focus on the business and its prospects instead of its stock price you’ll probably be less likely to make poor and emotional decisions. Even a 50% drop in a stock today barely looks like a blip on a long-term chart. Maintaining perspective and a long-term view should keep you invested as long as your thesis for owning the stock is still intact.
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