If I hold a stock whose price is 30%-50% above Jitta Line, its Jitta Line tends to keep rising and Jitta Score is consistently high (its fundamentals keep getting better but the market might expect too much).
We should sell when:
- Jitta Score and Jitta Line fall (the company’s business is declining or facing problems).
- There is a better investment opportunity (finding a better company at a more attractive price).
Before selling, you must first decide what to do with the money. Ideally, you should already have a better investment opportunity lining up. Otherwise, you will profit more from holding a wonderful company’s stocks than keeping cash or putting it in the bank.