how much to wait, both for profit or loss?

<p>You should evaluate your own risk tolerances to determine stop-loss placements or timings. Specific markets or securities should be studied to understand whether retracements are common. Securities that show retracements require a more active stop-loss and re-entry strategy. Stop-losses are a form of profit capturing and risk management, but they do not guarantee profitability.</p>

<p id="isPasted">The time you should wait for either profit or loss depends entirely on your investment strategy, financial goals, risk tolerance, and the type of asset you hold. There is no universal "right" amount of time.&nbsp;</p><p><strong>For Profit</strong></p><ul><li>Short-term (days to months): Traders looking for quick gains might see profits in days or weeks, using strategies like day trading or swing trading. For them, a 20-25% gain might be a trigger to sell, especially if technical indicators suggest a reversal.</li><li>Long-term (years to decades): Long-term investors, following a "buy and hold" strategy, often wait 5 to 10 years or even longer to allow their investments to benefit from compounding and weather short-term market volatility. The goal is significant wealth appreciation over time. Warren Buffett famously suggested holding a stock for 10 years or not owning it for 10 minutes. </li></ul><p><strong>For Loss</strong></p><ul><li>Cut losses early: A common rule in trading is to use a stop-loss strategy (e.g., selling if a stock falls 7-8% below your purchase price) to minimize significant drawdowns. This helps manage risk and encourages disciplined trading rather than emotional holding.</li><li>Re-evaluate fundamentals: For long-term investors, a short-term drop is often a normal market fluctuation. However, you should consider selling a loss-making stock if:</li><li>The fundamentals of the company or sector have changed for the worse.</li><li>The loss exceeds your predetermined risk tolerance or stop-loss point.</li><li>You need the capital for a better-performing opportunity or due to a life event.</li><li>Avoid emotional selling: Panicking and selling during a market downturn often locks in losses and causes investors to miss the eventual recovery. Patience is key in long-term investing, as historically, markets tend to recover and trend upward over long periods. </li></ul>