I think knowing when to sell is as important as knowing when to buy. I definitely have my own take profit strategy. I don’t use any technicals specifically but one that is to curb my greed and manage risk in terms of portfolio exposure.


My strategy depends whether I am trading or investing in the stock. If im trading, I would go with absolute profit or percentage rise. Once the stock has risen 5-10%, I prefer to take profit. Sometimes, if the potential profit is at least $500, I take profit too. It is always better to have earned less than to be a bag holder. If im wrong and momentum continues going strong, I might swing trade again if the stock still looks promising to climb and remain fundamentally sound.


If I’m investing in the stock, I would trim if percentage in my portfolio has exceeded what I’ve set so that I manage my risk. Of course, I may also buy back to balance back my portfolio.
# Do You Have Your Own Take-Profit Strategy or System?

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