When stocks have a big pump, you must be willing to reduce position.

After being in the stock market for a long time, you will gradually figure out a rule: no matter how good a stock is, it rarely goes up without looking back. The days it really takes off are actually very few; most of the time, it either stays flat or goes down.

So, when the market really comes, don’t just be happy. When it rises the most fiercely, what you should often do is reduce position. This is not being bearish, it’s leaving yourself a way out.
Think about it, if you just hold a full position every time there's a big pump and do nothing, when the opportunity actually comes to buy on a dip, will you still have money to scoop up bargains? You might just end up watching good stocks on discount while you are already trapped at the peak.

After trading stocks for a long time, everyone understands a principle: accumulate cash when prices rise, and accumulate stocks when prices fall. Turning unrealized gains into real money allows you to remain calm when others panic.

Don't always think about selling at the highest point, that's unrealistic. Being able to gradually recover your principal and profits at relatively high levels is already winning over most people.