Portfolio management is an important skill for any investor. This management involves not just monitoring your stocks and their underlying businesses but also involves decisions to be made when share prices move up or down. For some of your stocks, they may do well and their share prices will soar. On the flipside, some of your stock picks may decline in value as their businesses come under pressure. Let’s take a look at the first scenario where your stock surges in price and determine what you should do.

A happy problem

When one of your stock surges, it becomes a happy problem in deciding how you should react. On one hand, it’s tempting to want to lock in the gain by selling your shares. But on the other hand, it may also make sense to ride the rally to see your profits multiply even more. It can be painful to sell your shares as they continue to rise, thus making you feel like...