Quote:
Originally Posted by GregWeld
Of course "taking a profit" is not to be misconstrued as just taking any old profit. It has to be an individual case by case basis. When I look at MY account and I see a stock I've bought has gone up 30%... I might - MIGHT - decided to take HALF that gain... That doesn't mean I sell have that stock -- I sell enough to equal HALF the gain. For instance -- I own 100K of stock - it's now 130K -- I might sell 15 to 20K of shares and then use that money to either buy another stock - average some loser down - or maybe I just pay my bills with it. Either way -- it's a gain... BUT I'm not talking about taking half of a $100 gain. Come on guys -- that's not going to make or break you... SO many of these rules are to be learned now - and exercised LATER when you really start to build your accounts up. AND if I think a stock has a lot more to go... then I wouldn't sell any of it if I've bought it for long term and think it's still a buy. This is something you learn and begin to feel. I look at it as "would I buy more shares here?" Or - "man that was a lucky buy... and I need to be conservative?"
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Right.. which is why i threw in my measly $ amounts to show what kind of "profit" i had. And show the cost side that would be incurred IF I acted upon trying to "take" that profit. (ie. Bad idea).
Good explanation.
