This is one of the most important Strategies in this book. Historically, all of the different asset classes have a habit of surprising people by how far they move, and by how long they keep moving. While the market also has plenty of periods when it goes nowhere, the small moves do not come as a surprise. The amazing thing is the price reaction when the fundamentals change.
As a trader and an investor, if you can develop the habit of sticking with winning positions, you can obtain a significant comparative advantage. You will find that long after many others have sold out prematurely, you can persist, even if you are amazed by the market’s subsequent performance.