I think ,best solution to this problem is diversify in atleast 20 to 25 stocks for medium to large fund and dont sell for minor hiccups.
And one more point, take time before buying.Once u buy ,keep it for 5-10yrs or more.
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Quotes from" 100 bagger by cristopher mayer"
YOU SHOULD BE RELUCTANT SELLER
=If you are hunting for 100-baggers, you must learn to sit on your ass.
Buy right and sit tight.
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WHEN TO SELL
In his book Common Stocks and Uncommon Profits, Phil Fisher had a chapter called “When to Sell.”
…If the job has been correctly done when a common stock is purchased, the time to sell it is—almost never.”
=But even Fisher allows thrre and only three reasons to sell:
A…You’ve made a mistake in original purchase
B…The stock no longer meets your investment criteria(change in fundaments)
C…Better opportunity
… Switching is treacherous .
Every stock that’s moving looks better than the one you’re thinking of selling. And there are always stocks that are moving.
…Investors too bite on what’s moving and can’t sit on a stock that isn’t going anywhere. They also lose patience with one that is moving against them. This causes
them to make a lot of trades and never enjoy truly mammoth returns
=So in summary
“If you’ve done the job right
and bought a stock only after careful study, then you should be a reluctant seller”.
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.DONT SELL WHEN
=STOCK IS TOO HIGH OR HIGH PE
=STOCK HAS FALLEN
=STOCK IS GOING NO WEHERE
(Stock price is not indication for reason to sell)
A…STOCK IS TOO HIGH OR HIGH PE
=During periods of rapid share price appreciation, stock prices
can reach lofty P/E ratios. This shouldn’t necessarily discourage one from continuing to hold the stock.
B…STOCK HAS FALLEN
=Monster Beverage became a 100-bagger in 10 years,
…I count at least 10 different occasions where it fell more than 25 percent during that run.
… In three separate months, it lost
more than 40 percent of its value.
… Yet if you focused on the business—and not the stock price—you would never have sold. And if you put $10,000 in that stock, you would have $1 million at the end of 10 years
C…STOCK IS GOING NO WEHERE
=Sometimes stocks take a long time to get going. Phelps had plenty of examples of stocks that went nowhere (or down) for years but still delivered the big 100 to 1
100 baggers by cristopher mayer