HI there,
I've spoke about my philosophy around this many times. My approach is two-fold in that it differs based on the type of stock I am buying. If it is a Foundational stock - one that I intend to hold for decades, then there is no defined exit plan. I invest and stay invested unless something fundamentally changes that would make me reconsider that investment. Dan has a similar approach.
If it is a growth stock - I always have an exit plan despite the fact I still buy with a long-term mindset. It is rare I buy something that i don't intend to hold for at least five years but even at that, I will sell and take profits regularly. Typically when i buy a stock, I set my exit plan. So that may be selling 1/2 or 1/3 of my position and is usually done with the goal of recouping my initial capital and then letting the rest ride. My timeframe, target etc will all depend on what stock I am buying. The more speculative, the more I'll likely take out and the quicker I'll act. There is however, no cookie cutter approach.
What I will say, is that it is important to have a plan that lines up with your risk tolerance. Case in point, Dan typically doesn't take profits on his growth stocks and just goes with it as he has a higher risk profile than me. He will then unload if a position starts to account for a bigger % of his portfolio than he is comfortable with. Me, I take my profits much earlier. This caps my upside, but also limits my downside.
I should also point out that since I am an investor (not a trader), I am not interested in timing the markets. So my plan is pre-determined and I stick to it. So if I buy a position and intend to recoup my initial capital after it gains 100% - then I do so regardless of time/momentum or other technical indicators.
Mat