4D·

Let it run... or take profits? 🤔

I am faced with the same question every time. Do I let my profits run or do I take profits at regular intervals?

For my part, I have found my strategy. With very few exceptions, I am a fan of staggered profit-taking.

The screenshot shows this very well using Alibaba as an example. Only yesterday, after a 10% rise, I took further profits and reduced almost my entire position except for a small part.

So I rarely go "all-out" at once ... but I also rarely go "all-in" at once.

This has two advantages for me:

1) If I'm wrong (at the time of the sale - the share continues to rise afterwards or continues to fall after the purchase), I still profit from it

2) Profit-taking always feels good. You have something in your hand - and no one has ever been impoverished by profit-taking 😉

How do you handle this? What is your strategy?

$BABA (+4.49%)

24.09

Alibaba ADR

Sold x28 at €151.30

€4,236.40

54.51%

25 Comments

Homer@Simpson

Always take profits in the form of dividends 😂

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Show answer

Echsenkönig Atokarn@Bezehgombjuderstimme

Can't you place a trailing stop order with your broker? As long as the thing rises, nothing happens and it just follows suit. If it then pops a little, you get out and basically have "the best of both worlds".

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Part_Time_Joe@Part_Time_Joe

@Bezehgombjuderstimme I actually don't know that at all. But I'm not a fan of it. To avoid being stopped out immediately, you have to have a sufficient distance and it can always happen that the share loses 10% or more due to some news. I tend to use such opportunities to buy more

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Echsenkönig Atokarn@Bezehgombjuderstimme

@Part_Time_Joe Oh ok, yes then it is indeed more difficult 😃

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Kai@Dividenden-Sammler

Buy and hold. At the beginning I think about which position I want to keep forever. Otherwise I don't invest. So if nothing extraordinary happens, I don't sell.

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Chris@Multibagger

I think about what I think the share is capable of beforehand. If I think it is a potential doubler or even a tenbagger, I don't sell a single share. If I only see a limited potential of max. 50% from the outset, I get out completely once it has been reached

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jkb92@jkb92

I am also 50% at $BABA but would still let it run, especially as Cathie Woods has just joined. There still seems to be something to be gained.

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All-in-or-nothing@All-in-or-nothing

@jkb92 So Cathie Wood is usually one of the strongest counter-indicators you can use😂.

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Part_Time_Joe@Part_Time_Joe

@All-in-or-nothing Isn't she the Insider Trader Senator from the USA?

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Timo@Aktienorang-Utan

@jkb92 if Cathie Woods is in, make sure you win land...

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All-in-or-nothing@All-in-or-nothing

@Part_Time_Joe this is Nancy Pelosi😅😉.

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jkb92@jkb92

@All-in-or-nothing I have recently had the opposite experience with 3 stocks and their returns are not that bad either... but for me it is more of a sign that institutional investors are now showing more interest in China again and I believe that the wave is just starting to roll in. Valuations are very moderate in comparison...

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All-in-or-nothing@All-in-or-nothing

@jkb92 But let me ask you something: did you buy the shares because Cathie Wood bought them?
And yes, of course the valuations in China are absolutely moderate in comparison. However, if you take systemic differences, government intervention etc. into account, these discounts are not entirely unjustified due to the significance of these factors. Of course, this is my personal opinion and everyone is allowed to invest in what they feel comfortable with, but I personally do not believe in targeted investments in China Abstand🤷🏼‍♂️.

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jkb92@jkb92

@All-in-or-nothing found the stocks exciting and therefore invested. Additional investments by large investors then encouraged me

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Alfred E.Neumann :-)@Papiertiger

still have special prices at CD otherwise->>> the comdirect fees are not without btw.... I only use the old account for my buy and hold ETFs.

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Part_Time_Joe@Part_Time_Joe

@Papiertiger I have a frequent trader discount. I think you get it from 150 transactions within 6 months. But I can't tell you how high it is. I think 25%

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TradingHase@TradingHase

I actually did the same with Alibaba yesterday and took profits 👍🏼

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Part_Time_Joe@Part_Time_Joe

@TradingHase Congratulations on that! 👌

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Seventrader@7Trader

I hold my 200 shares with iron hands - until the ATH is reached 🤑🤞🏼

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Part_Time_Joe@Part_Time_Joe

@7Trader Keep your fingers crossed! I have no objection to selling my last shares. But the share has to rise at least another 10% for that :)

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GeldGenie@GeldGenie

The only thing that matters to me is whether the price is appropriate or not. Overbought - sell, discount - buy

% of profit is of little interest to me in the end, or is in line with the strategy. 😊

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Ramon L.@Sambava

A stop loss will fix your problems.

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ashish J.@JaqenH

And pay 25% tax on profits . Not to mention breaking compounding effect ?

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Part_Time_Joe@Part_Time_Joe

@JaqenH I am convinced that taking advantage of price fluctuations (profit taking and reinvesting) overcompensates the advantage of the compounding effect. And taxes have to be paid either way at one point

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