Taking profits and letting winners contradiction

Discussion in 'Technical Analysis' started by mute9003, Feb 19, 2022.

  1. itzhakk

    itzhakk

    Youtube gurus say contradicting things to be able to say afterwards "I told you" whatever outcome is.
     
    #11     Feb 20, 2022
    Fonz, rb7, KCalhoun and 1 other person like this.
  2. Lettig winners run is key, but for your psyche you should take some profits and let some run till the trend reverses.
     
    #12     Feb 20, 2022
  3. Nobert

    Nobert

    (Laughs),
    mentioning ~50 different scenarios & then be like , - ,,I told you, didn't i"

    It's like those bs articles :
    ,,The Top 10 Stocks For The Next 50 Years By Some Manager"
    (They mix in one or two for a decent price)

    While rest is overpriced ~40 times.
    But when that one hits, em article authors be like -
    ,,I TOLD YOU"
    ap_859755923810.jpg

    Great words, like ,,ONE DAY", sadly, misleading often.
     
    Last edited: Feb 20, 2022
    #13     Feb 20, 2022
    itzhakk likes this.
  4. It works like this:
    You have a view (buy or sell)
    You have position limits (entry, max)

    When you buy (at entry limit) and add as it performs up to max limit. if the stock continues to run, you sell whatever is above the max limit. For example, if your max weight is 8% and the stock rallies (pushing it to say 10% weight), you sell the excess (2%). That is "profit taking".

    You exit when your view changes. If you're at 8% and now new info comes out that indicates company may perform poorly, you sell out entirely.

    Good traders make money when they are right and lose money when they are wrong. Do not muddle it.
     
    #14     Feb 20, 2022
  5. Peter8519

    Peter8519

    All trends will die someday so it's not possible to hold a position forever. Taking profit is key part of the job. As with any action, a win is a win. Of course, all want a bigger win. On the other hand, a loss is a loss. Make it a smaller one. I still unable to avoid "taking a loss and to see it taking off later". This does not mean that I not going to take a loss. It's designed to avoid events like PYPL and FB.
     
    #15     Feb 20, 2022
  6. easymon1

    easymon1

    #16     Feb 20, 2022