2Wk·

Profit taking

Dear people,

I would be interested to know when the time usually comes for you to take profits.

Regardless of the capital invested and the resulting profits - if you can and want to look at them separately from each other.

Of course, for most people it is a subjective feeling, but do your fingers start tingling at 50%, 100% or only at a 200%-500% price increase?

And are there any other indicators that are relevant for you to say at some point: "Well, now the time has come. Now I'm getting out!"?

For example:

I am invested in $4DS (-0.89%) and have now doubled my investment.

8 Comments

Patrick Schäfer@Hotte1909

2Wk

Phew, difficult. For trades, I set target zones beforehand, and if they are reached I either continue working with ts or close the position.
For long-term investments, I usually rebalance 1xpa to get roughly to my target weighting or something changes fundamentally in the company.

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BumbumGoosie@BumbumGoosie

2Wk

I think it's a very good question, I ask myself it all the time.

The last time I took profits from "normal" shares without leverage or anything like that, I did it for the purpose of liquidation for the better hotel on vacation.

Because apart from the ETFs that are invested for the longer term, the rest is not invested for the long term and is intended to make my life more enjoyable.

Or as grandma used to say: "it's no good being the richest man in the cemetery"

Of course, you can always wait even longer, add even more, trade even more cunningly... in the end, the question is always what for? A lot of patience? More money for leisure? The new car?

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GHF@GHF

2Wk

I generally don't get out when a share has done very well or has doubled, for example. I would much rather take advantage of the good run or the momentum to satisfy my greed 😉.
However, if I have doubts in the medium term that there could be too much of a pullback, I set a stop loss or trailing stop loss.

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Seventrader@7Trader

2Wk

either it is already preprogrammed at the time of purchase that it will be a temporary trade - then I sell the entire position when the target is reached. OR if it is a holding position and it becomes "too big" for me (is that even possible ??? :-P), then I reduce it a little and put this profit elsewhere

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K@TechNav

1Wk

If the forward P/E is much higher than the ROE, this is an indicator that things have run too hot.

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Dirty30@Dirty30

2Wk

when the indicators show that a top phase is imminent.

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BumbumGoosie@BumbumGoosie

2Wk

@Dirty30 What indicators are you using? So do you have three or four that have always served you well? Or more of a complete analysis on your part?

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Dirty30@Dirty30

2Wk

@BumbumGoosie It is a mix of RSI in different timeframes. I usually also use the daily timeframe, although I find the weekly more meaningful for bull and bear markets. Other indicators are the 50 and 200 week averages. In addition, the further a price moves away from its 200-week line, the more likely it is that it will be sold, which represents a "drop" somewhere from the mean, as shares always move back to the 200 at regular intervals. For an approximate explanation of my expectations for 2026, for example, see my penultimate post from a week ago.

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