Fast 20% Gain Can Spell Bigger Profits To Come.(A)(INVESTOR'S CORNER)

Byline: JONAH KERI

You buy a stock perfectly, jumping in just as it clears its pivot point. You're optimistic. You're hopeful it'll work its way up and over time you'll make money.

Suddenly, it takes off. It shoots up 20% in a week or two, exceeding your already lofty goals.

What do you do? A monster move that fast out of the gate surely gets your adrenaline pumping. Emotion may have seeped in, clouding your judgment. If I sell now, you drool, I pocket 20% in just a few days. With my $20,000 investment, that's . . . $4,000!

A nice profit, no doubt. But such a quick move can often portend an even brighter future. Stocks that shoot up 20% from their pivot points in the first few weeks are the ones most likely to become the next Wal-Mart or Cisco.

Chuck your quick gainer after a few days and you may kick yourself when it's quadrupled in price. Or a few years later, after it's zoomed 10-fold.

Your best strategy? Give your stock a chance to prove itself if it opens with such impressive gains.