When will you exit?

I am into trading in NSE/BSE from less than a year. I am now struck with a dilemma on when to exit. Need fellow traders opinion to have some clarity.

Many of my stocks have grown up by 40% in last few months. I am not sure whether they grow further. Do I need to sell them now or should I hold? If I sell now then it will become short term gain and I have to pay 15% tax. But if I hold for a whole year then current price may not come again. I am really lost how to strategize exit on the stocks that have grown real fast.

What do you generally do in such stocks which have grown fast?

Thank you, Franklin

Dear Franklin

If your profits are such that some quantity of your shares are free, then keep free shares and sell the rest.

Regards
Khurshed

well up to you...

There is no limit for share what price it will go max or min...

but looking at current condition if i was you i would prefer to sit on money ..
you can always reenter a stock ^^

That is a million dollar question..I have burnt myself many a times just because there was no Exit plan...(after being in profits)

I love to encash profit but what about 15% tax? Isn't that one more concern to get short term gain?

Thanks Khurshed. When you sell for short term gains, do you also account for 15% tax amount as well?

check my strategy for exit, It may help to set you own...
first 50% position = 2 contract and remaining is 1 contractor which was let ran for profit
only one trade today...

@kainiteh: I do not understand Option/Future trading. Only into equity trading now. But, good to see that such a detailed strategy for a retail investor. Inspiring stuff, Thank you.

Yes short term capital gains tax have to be accounted for, dear Franklin. Sorry for the delay in reply. Regards. Khurshed.

The title of this thread "WHEN WILL YOU EXIT" itself suggests that a trader needs to have a trade plan before entering the scrip.
Entry, Target, Stop loss. Most important part of the plan is RISK REWARD RATIO.
For example, cost of scrip at buy is 100. In this case, depending on the risk appetite, one fixes the SL, say 96. So the risk is Rs. 4/-. Now coming to the Reward part, the target in this case should not be less than 108. So the reward is Rs. 8/-. Thus Risk/Reward ratio is 1:2. This is the minimum that one has to ensure while planning the trade. Depending on the bullishness of the scrip, the RR could be 1:2.5, 1:3, etc.
After finalizing the trade plan, you take entry and follow the trade plan with your strict top loss in mind. If you feel, your plan is not working, there is always this SL to prevent further loss, and you are out of the trade. On the other hand, if the scrip goes according to the trade plan, keep trailing SL and revise the target upwards in order to protect your profits.
You can thus put it this way --- PLAN THE TRADE, TRADE THE PLAN

Regards, Khurshed