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Hi, Dee:
The moment I usually sell is when a stock has reached its fair value. Generally, I am trying to get ~ 50% appreciation for any given stock candidate. I do not recommend you buying stocks simply to get 5-10% appreciation. I'd rather put your money in the bank that way. The reason is simple. Stocks can move up or down 5-10% in a given week, some move more than that. Thus, if your stock gain 10% for the week, is it because of luck or is it because of skill? I must say it is 100% pure luck.
Is it hard to find a stock with a potential 50% appreciation? It is hard but doable. Nobody say it would be easy. If you look at many stocks in the major indices, their 52 week range is 50% or more. Thus 50% movement in one year is quite possible.
What you should be careful is the definition of fair value. For the same stock, Microsoft, for instance, investor A might think that its fair value is at $ 30 per share, while another investor B might think that its fair value is at $ 40 per share. You should check each investor's assumptions before deciding what is the correct fair value is.
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