1D·

Take Profit on Safran

The price of $SAF (+0.19%) reached my take profit level today. Right away I opened a new position on it. Looking forward to see how aerospace & defense stocks will perform in the coming months and years 😎

#trading
#long
#tradingstrategy
#tradingportfolio
#safran
#stocks
#aerospace
#defense
#france
#mikeupegui

11.08

Safran

Sold at €364.00

6 Comments

Keineui@Keineui

So you sold and bought again? Why does this make sense?

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Mike U.@MikeUpegui

@Keineui thanks for asking. According to my trading strategy, it actually makes perfect sense. I want to stay invested and participate in upward price movements rather than sitting on the sidelines waiting for a specific price level to be reached. Of course, my position sizes are not the same. My buy orders near top prices are much smaller, while I allocate pretty much more capital after larger pullbacks or market crashes. This way I remain exposed to the market while still adjusting risk and opportunity.

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Pelo@pelo

@MikeUpegui why not simply sell a large part of the position and keep a small portion open to stay invested? Rebuying a little higher just increases your average entry price, which doesn’t seem very beneficial to me 🧐

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Mike U.@MikeUpegui

@pelo that's a very good question. There are a couple of reasons behind it. One of them is that I wouldn't be able to realize any gains and actually cash out if I never closed a position completely, and generating cash from my trading portfolio is one of my goals.

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Pelo@pelo

@MikeUpegui I understand your strategy, but if you sell and buy back right after at a similar or higher price, you’re putting your profit back at risk, while also potentially paying extra trading fees and creating unnecessary tax friction. It’s just my opinion

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Mike U.@MikeUpegui

16H

@pelo good point. In my view, position size is really the key factor in risk management. If the position is sized appropriately, the overall risk stays under control. Trading fees are comparatively very small and usually not something I worry much about. What matters far more is having a clear risk plan and sticking to it.

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