The problem with that plan is that you might not enter back into your original positions at the right time (i.e. you might buy back at a higher price that the one you exited at).

Also... if your small nest egg is in single stocks, you are taking too much risk and maybe should reallocate more into index funds.

If your investment horizon is a long time, than just keep your money where it is (though I'd definitely switch to index funds) and ride the wave.