If you have a stock that you intend to hold long-term, but whose price explodes 20-40% over a week, and you feel that price increase is a big over reaction to some small news, does it make sense to sell some or all of your position?
It feels like it may make sense to sell some of it, with the intention to buy back in when the price drops. But if you're sure the price is going to drop, does it make more sense to sell your entire position instead of just some?
Are there any tax concerns that need to be taken into account when selling some of a position whenever it moons and buying back in later?
Or is all of this a fools errand and I should just buy and hold?
An example of a stock that actually did this, would be EVGO last November, when it doubled in price over “`a week due the infrastructure bill passing and then immediately fell back to earth.
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