question for the hedgies
quick question for the hedgies on here surrounding strategy for when to sell when value investing. if there are many strong buying opportunities, does it not make sense to sell if you are up a small amount after a short holding period, and then reinvest your capital from the original trade + gains into another one of these strong buying opportunities, instead of staying in the original trade and hoping that your view is correct?
it feels like if you open up to the idea of doing this then you can either profit from (1) actually being right about your long term fundamentals perspective, or (2) can profit from short term price movement.
real life example: I was looking at this stock in my portfolio that I bought 17 days ago that was up 6.46% (not because of any substantial news as far as I could tell which would affect the intrinsic value of the stock). 6.46% in 17 days is 100%+ annualized, I didn't think that the stock would be 100% higher a year from now so I took profits and am going to roll this money into another strong buying opportunity. is it dumb to think this way? if not, where to draw the line? for another real life ex, what if I am up 2.77% on a stock that I bought 14 days ago. 2.77% doesn't sound that good but 2.77% over 14 days is 70%+ annualized and 70%+ annualized sounds pretty good. why shouldn't I take profits now and roll into another strong buying opportunity?
the real flaw is to assume that there are enough strong buying opportunities to be able to continuously take profits from small gainers? will I just be left bagholding losers if I pursue this strategy of taking profits on winners quickly? is this even a problem since I think that the losers will not be losers over a longer time horizon?
feels like you can only win if you take profits and why would I wait to see if I win over the long term when I already know that I won in the short term off of a small gainer. feels like derisking by taking profits from a small gainer. thoughts?