In doubt, what to do if the price of your shares becomes very high?

I always have this battle, whether to keep catching dividends or sell for a nice profit.
Selling for fear of losing the profit.

This is a serious issue for me as I have already missed many rallies that went even higher than expected.

Why did you buy the stock in the first place?

  • Did you buy it to invest in a company that will keep churning out profits and kick back those profits to you in the form of dividends and stock buybacks?

  • Or did you trade into the stock for the hope of a price appreciation?

If the first is the case, unless the company royally screws something up or your investment thesis changes, you hold the stock “forever”.
If the second is the case, you probably should have decided a price target beforehand at which you were likely going to sell. If you didn’t and you are unsure now: Does it seem like the company is still doing the thing that made the market bid their price up? If yes, then hold if no then (partially) sell.

But really, why did you invest in this company if you fear losing share price profit? That means you “invested” into a very unpredictable unstable company which seems the underlying issue.

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I do it for the dividend, but if the stock price has risen and perhaps more than the dividend would yield for that year, then I am already strongly inclined to sell.
There are several reasons, especially eagerness, but you know that the stock price does not only depend on whether the company performs well.
That is way too short sighted, almost all shares also depend on general mood.
Even then I would be disappointed if I went from big plus to minus just to get that dividend.
After all, I always have money on the sidelines to buy extra if a crash occurs.

For me this is the eternal fight, unfortunately I also see that shares often rise much further, then the foregoing applies even more of course, but also selling possibly with a significantly higher value is then taken away from me.

Well in that case where you see shares go above and beyond the companies fundamentals, even if it’s a great company, you can sell (part) of your position, and then buy it back when the stock price normalises again.
That would be a logical thing to do if you ask me.