Ask a Fool: I Invested in a Stock That Quickly Doubled. Should I Sell It?

It's generally a bad idea to sell any stock just to "lock in your gains." For example, if I had sold my Square stock after it doubled from my purchase price, I would have missed out on an additional 180% of gains.

However, there are some good reasons to sell a stock for a profit. If you think the stock is unjustifiably expensive, for example, or if the company's growth has started to noticeably slow down, it could be a smart idea to sell. It can also be wise to sell if you need the money. But don't sell the stock of a great business simply because it's worth more than what you paid for it.

Taxes are another important consideration. If you sell before you've owned the stock for at least a year, your profit will be considered a short-term capital gain, which will be taxed at your ordinary income tax rate. If you hang on until more than a year has passed, it will qualify for the significantly lower long-term capital gains tax rates.

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Source Fool.com