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Sell defense stocks now to take profits?

I have been invested in my defense stocks for over a year now. I have to say that Rheinmetall $RHM (-6.84%) was also the first share I ever bought in January last year. 😁 $HAG (-12.75%)
$BA. (-4.92%)
$KOG (-5.65%)
$R3NK (-6.53%)

Now I'm up more than 100% on many stocks, in some cases almost 200%. But the rally in the last few days and weeks is just crazy.

I am very, very sure that defense stocks will continue to rise in the long term. Otherwise I wouldn't have made the investment. 💁🏽‍♀️ But I am also sure that sooner or later there will be a correction. And for me that is actually a matter of days/weeks.

That's why I'm now considering whether I shouldn't actually realize my profits now and then get back in at a "favorable" time (for me that means -10, -20 or -30%).

Unfortunately, I don't have any experience in this area yet, so it's difficult to assess this right now. How do those of you who have been invested for longer do it? Do you also realize gains on shares at a "favorable" time if you are invested in these shares for the long term and are convinced?

Слава Україні 💙💛

16 Comments

Vinc3🚀@BlockBard

If you are convinced in the long term, leave it alone. Otherwise you'll just drive yourself crazy and it's worth it nicht☝️

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Mellischnelli@Mellischnelli

@BlockBard hm, thanks for your input. I have to admit that I had already reached my personal financial goal for 5 years after one year and am therefore thinking about taking profits. 😄 I hope more opinions come in here. That's why this platform is so valuable. ☺️

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Dividendenopi👴@Dividendenopi

If you are "very very sure" there is no reason to get out. There are always setbacks and you can use them to buy more. If this is not for your nerves, then take your stake out - note the tax - and let the profits run and invest wisely in another sector

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Mellischnelli@Mellischnelli

@Dividendenopi It has nothing to do with my nerves per se, but with realizing profits in this "hype". Just as you say, you can use setbacks to buy more. But what's wrong with taking profits from time to time?
And thanks for the tax advice - I'm liable for tax in Switzerland. 🙃 And I don't understand about the other sector. What's wrong with this sector - which is also very relevant for the future?

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Dividendenopi👴@Dividendenopi

@Mellischnelli I meant that you can take out your purchase price as profit and let the price gains stand and continue. And use the money to differentiate and invest in something else, such as armaments, that suits you in the longer term. Ok, I don't know about Switzerland and tax 😇🤷‍♂️

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Mellischnelli@Mellischnelli

@Dividendenopi I only pay tax on dividends here. 😜 Capital gains from the sale of shares are generally tax-free as a private individual.
I'm actually already active in several sectors and therefore relatively diversified (although probably much more risk-averse than conventional investors). Still quite USA and tech-heavy, though. The defense sector is simply something very personal for me because of my family over there, which is why I'm fundamentally very attached to it. I am simply very interested in how others act in such situations. There are also people who trade a lot more than I do. 😃

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Dividendenopi👴@Dividendenopi

@Mellischnelli And people who trade also sell when they make a profit and buy something nice and put the rest of the money back into the market when the opportunity arises. Others think nothing of it and others say nothing at all. 🤷‍♂️ With respect, I have the impression that you basically already know what you want and are just waiting for someone else to see it the same way to give you inner confirmation 🫠🤔😉

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Mellischnelli@Mellischnelli

@Dividendenopi haha 😜 I actually kind of want to, but I've done quite well so far with my "go and empty your pockets" strategy. It also looks pretty cool with the +100%. ☺️ I'm not dependent on the money right now, of course, but I have the feeling that I can make "more" out of it. But I haven't made up my mind yet because I'd like to hear different opinions or ways of doing things. 😊

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Joschi 💎.@ETF_Jesus

If you really want to realize something, take your stake out and let the rest continue. This is a common method. But if you're really that confident, keep going. We don't all have a crystal ball, but setbacks wouldn't reduce your profits too much with the growth. You can then use the stake to build up a $VWCE or similar, I don't know what your strategy is.
That's how I would do it, my rule of thumb is that I sell (in parts) as soon as I start to screenshot the book profits.

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Julia@Quasar

I'm up 700% on RHM, 250% on HAG, added to Renk yesterday and wouldn't sell for the life of me at the moment. Not in the current geopolitical situation. Europe must collectively invest massively in armaments - there is practically no scenario that could change this in the near future. It's war economy time, and that's here to stay. There is still plenty of room for improvement.

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Mellischnelli@Mellischnelli

@Quasar I basically agree with that. However, I also see the opportunity to buy again in the event of a setback or correction. It's not about selling the positions and then never buying anything again 😉

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LarryLindt@LarryLindt

Selling profits has never made anyone poor ...

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Alex C.@wealth_strategist_1776

Glory to the heroes! :) Lass das weiterlaufen.....

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Chris@IronEagle

I once sold 10 shares with a 125% gain - so I'm sure it will continue to go up now, as it always does when I sell. But after the debacle with NVidia when I didn't sell at 145 euros, I now want to secure some profit. The other half is still running. As with my decisions, I was probably wrong again :-)

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Mellischnelli@Mellischnelli

@IronEagle I think this is very prudent. I have now decided to take profits on one part ($R3NK and $HAG). $RHM I will simply let $KOG and $BA. continue to run. Some factors at Rheinmetall also point to an overbought situation. Just like the other defense companies. Small investors are also driving up prices because of Fomo. There are already signs of "corrections" at this very moment. I think we will see another -10 to -30 %. ☺️

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Guillermo@gmoji1

Its about how comfortable you are, if you lose sleep over it you should probably sell. Preserving your capital could be a priority depending on your time horizon

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