It is very important to understand when to book profits or losses.
It is important to know the extent of a stock decline and when you should be ready to get back on the horse.
One of the way is to trade long term divergences. I have very briefly given examples of what has happened in the past with few other stocks and one should look into their portfolio to see if this can help them make decisions.
Please visit the following link to my page and have a look!
Click on the chart to view!