When To Sell Growth Stocks: Why This Rule Worked Like Magic For This Small-Cap Leader

Blockhead11-06

When should you sell growth stocks so you don't give most or all of your profits back? Consider the 2019 tale of Sleep Number (SNBR). It took 38 trading days for Sleep Number to stage a darn good ...

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Consider the 2019 tale of Sleep Number (SNBR).\nIt took 38 trading days for Sleep Number to stage a darn good ...</p>\n\n<a href=\"https://www.investors.com/how-to-invest/investors-corner/how-to-sell-growth-stocks-sell-rule-magic-small-cap-leader/\">Source Link</a>\n\n</div>\n","source":"investor_business_daily_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>When To Sell Growth Stocks: Why This Rule Worked Like Magic For This Small-Cap Leader</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhen To Sell Growth Stocks: Why This Rule Worked Like Magic For This Small-Cap Leader\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-06 21:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.investors.com/how-to-invest/investors-corner/how-to-sell-growth-stocks-sell-rule-magic-small-cap-leader/><strong>Blockhead</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>When should you sell growth stocks so you don't give most or all of your profits back? Consider the 2019 tale of Sleep Number (SNBR).\nIt took 38 trading days for Sleep Number to stage a darn good ...</p>\n\n<a href=\"https://www.investors.com/how-to-invest/investors-corner/how-to-sell-growth-stocks-sell-rule-magic-small-cap-leader/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4178","symbol_name":"家庭装饰零售","start_time":0,"source_url":"https://www.investors.com/how-to-invest/investors-corner/how-to-sell-growth-stocks-sell-rule-magic-small-cap-leader/","article_id":"2481609421","we_media_id":null,"thumbnails":["https://www.investors.com/wp-content/uploads/2017/04/Stock-bullbutt2-adobe-150x150.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2481609421","pubTimestamp":1730898051,"sourceInfo":{"source_id":"investor_business_daily_highlight","name":"Investor’s Business Daily"},"weMediaInfo":null,"summary":"When should you sell growth stocks so you don't give most or all of your profits back? Consider the 2019 tale of Sleep Number.","collect":0,"end_time":0,"defaultTopTitle":"investors.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4178":"家庭装饰零售","SNBR":"Sleep Number Corporation"},"translate_title":"何时出售成长型股票：为什么这条规则对这家小盘股领导者来说像魔法一样有效","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"SNBR":1},"content_text":"When should you sell growth stocks so you don't give most or all of your profits back? Consider the 2019 tale of Sleep Number (SNBR).\nIt took 38 trading days for Sleep Number to stage a darn good breakout on Valentine's Day and rally 20% from the proper buy point. That move exuded market leadership. Then it took just seven days to give the gain back.\nAs hard it may be to do, it pays to curb your greed in most of your stock market winners and make a preemptive sell.\n\n\n\n↑\nX\n\n\n\n\nTaking Emotion Out: How This Investment Advisor Applies The IBD Methodology In Trading\n\n\nSee All Videos\n\n\n\n\nNOW PLAYING\nTaking Emotion Out: How This Investment Advisor Applies The IBD Methodology In Trading\n\n\n\n\nThe exact sell rule? Take at least some profits when the stock rallies 20% to 25% above the breakout point. Or sell the entire stake.\nThe Tough Psychology Of Selling Near Highs\nSelling on the way up often leads to forfeiture of further gains. When you believe you have one of those rare big market winners, you definitely want to hold as long as you can. Patience in the best stocks is the key to achieving a 200% or 300% gain.\nBut few stocks reach such fantastic gains, and selling most of your winners in the 20%-25% range and keeping losses small is savvy portfolio management. It leads to consistent long-term gains.\nSoon after posting that 20% gain, Sleep Number sold off hard April 18 (1). It gapped down 18% and crashed through its 10-week moving average.\nVolume rocketed more than six times its 50-day average. It eclipsed the total shares traded on the Feb. 14 breakout. The decisive break of the 50-day support level in heavy volume was a clear sell signal.\nA day earlier, the firm reported a 54% jump in Q1 earnings to 80 cents a share. A 7% EPS drop in the year-ago quarter helped boost that increase. Perhaps the Street wanted to see a big increase in full-year guidance. Sleep Number kept it unchanged.\nWhen To Sell Stocks: Study A Stock's Unique History\nA stock's long-term history can shed light on how it may act after advancing sharply in price. Sleep Number did not advance far after breaking out of a prior base. In April 2017, Sleep Number vaulted out of a big cup with handle at 25.91 and rose more than 41%. But the next two bases produced gains of just 16% (after a November 2017 breakout) and 8% (November 2018).\nWhen the fundamentals of a market winner are less than truly stellar, take the gains and hunt for an even better stocks following The IBD Methodology.\n\nInvesting With IBD Podcast: Get The Latest Episode And Subscribe For Free Today\n\nIn general, if you want to land a true market leader, demand earnings per share to rise 25% or more each quarter and sales to increase at least 20%. Following that and other elements of The IBD Methodology will help improve your investing results.\nA version of this column was first published on May 24, 2020. Please follow Chung on Twitter at @SaitoChung and @IBD_DChung for more on growth stocks, chart analysis, breakouts and sell rules.\nYOU MIGHT ALSO LIKE:\nIBD Stock Of The Day\nInside The IBD 50\nTop-Notch Stock Screening, Chart Pattern Recognition, 1-On-1 Coaching In MarketSurge","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2481609421"}