I would like to know if there is any theory/strategy behind booking profits when it comes to investing?
Many times I have observed the stocks rallied 20-40% in the span of 2-4 months. Since I am investing in these stocks for long-term (3+ years), I try to hold it but in a couple of months the same stocks trading near to my entry point. And then I regret not booking the decent profit at a higher level.
Is this a very common thing, when it comes to investing?
When should a retail investor book profit from particular stock?