Some people automatically sell the “winners”—stocks that go up—and hold on to their “losers”—stocks that go down-which is about as sensible as pulling out the flowers and watering the weeds.
A better strategy, it seems to me, is to rotate in and out of stocks depending on what has happened to the price as it relates to the story. By successfully rotating in and out of several stalwarts for modest gains, you can get the same result as you would with a single big winner: six 30-percent moves compounded equals a fourbagger plus, and six 25-percent moves compounded is nearly a fourbagger.
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These are some lessons that peter lynch thought us in one up on wall street
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