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Message
What is your philosophy on taking short term gains on stocks?
Posted on 8/25/22 at 2:45 pm
Posted on 8/25/22 at 2:45 pm
Do you have a number in advance where you plan to sell?
Like if you buy a potential long-term hold, and your investment goes up $1,000 or more in one day, do you take a quick profit?
Like if you buy a potential long-term hold, and your investment goes up $1,000 or more in one day, do you take a quick profit?
21
Posted on 8/25/22 at 2:47 pm to Bjorn Cyborg
quote:
long-term hold
=/=
quote:
take a quick profit
Posted on 8/25/22 at 2:48 pm to bluemoons
I understand that, but does a sharp increase, perhaps unexpected, change your mind?
Posted on 8/25/22 at 2:48 pm to Bjorn Cyborg
If I am in the green and want to sell, I’ll sell.
If it is a long term invest and hold, I do that through a separate account - I don’t get emotional with that account - what I buy and place in that account, my kids can fight over it one day.
If it is a long term invest and hold, I do that through a separate account - I don’t get emotional with that account - what I buy and place in that account, my kids can fight over it one day.
Posted on 8/25/22 at 2:53 pm to Bjorn Cyborg
quote:
do you take a quick profit?
Answering with 2.5 more questions:
1. investing vs. gambling - what is the difference to you?
2. if you do take a quick profit, what do you do with the after-tax profit? and why?
Posted on 8/25/22 at 2:54 pm to Bjorn Cyborg
"You'll never go broke making a profit"
Write that down.
Write that down.
Posted on 8/25/22 at 3:09 pm to Bjorn Cyborg
You should consider “value” in your decision making. You buy a stock because you think it’s undervalued. The stock then goes up. Do you think it’s still undervalued and therefore still has upside? Or perhaps you think you could invest that money in another stock that is more undervalued and therefore has more upside?
Posted on 8/25/22 at 3:23 pm to Bjorn Cyborg
quote:
short term gains
What is this?
Posted on 8/25/22 at 3:25 pm to Neauxla_Tiger
Oh you mean AT gains.
Posted on 8/25/22 at 3:39 pm to Bjorn Cyborg
quote:
Like if you buy a potential long-term hold, and your investment goes up $1,000 or more in one day, do you take a quick profit?
$1,000 up on a $1,000 investment is much different than $1,000 up on a $20,000 investment.
Use percentages
Posted on 8/25/22 at 4:52 pm to Bjorn Cyborg
quote:
What is your philosophy on taking short term gains on stocks?
well they just added another trillion to the debt
if you hold stocks now you are ensuring it goes down
take profits wherever you can, and only buy on the large corrections is the only safe play right now
the fed cannot keep the markets artificially inflated forever, and just like with crypto, the markets are due for a sharp correction.
Posted on 8/25/22 at 5:00 pm to keakar
quote:
well they just added another trillion to the debt if you hold stocks now you are ensuring it goes down take profits wherever you can, and only buy on the large corrections is the only safe play right now the fed cannot keep the markets artificially inflated forever, and just like with crypto, the markets are due for a sharp correction.
I’ve been hearing some version of this since 2009. The S&P is up something like 400% since then.
Posted on 8/25/22 at 5:54 pm to Joshjrn
quote:
The S&P is up something like 400% since then.
thats only true in very long term as with all the markets
you can make 10x more by buying the dips and selling the highs then you ever will do by just holding everything long term
long term should only be a single part of your investment portfolio and not your only strategy
Posted on 8/25/22 at 8:16 pm to Bjorn Cyborg
I think it can be a great idea. If you have something that has multiplied in value lock up your gains instead of worrying about what percentage you give back in taxes.
While long term gains are appealing I'd rather pay for short term gains than risk losing paper profits.
While long term gains are appealing I'd rather pay for short term gains than risk losing paper profits.
Posted on 8/25/22 at 10:36 pm to Bjorn Cyborg
That's probably one of the hardest questions to answer. So many factors. Some ppl sell when a stock is breaking out and miss out on so many gains. Some people hold a stock when it's down hoping it will rebound to see their account get destroyed. Best quote for me on my journey has been let the winners run and cut losers quick. Easier said than done, but have a plan and execute it. This is for short term trading of course, not buy and hold for years type thing. Even so, a concept that should be taken into consideration. If a stock isn't working there's a reason why. If a stock is working there's a reason why.
Posted on 8/26/22 at 5:20 am to Bjorn Cyborg
IF you are investing in shares of a company with an operating history, you should base you sell decision on whether the the market cap of the stock now exceeds the value of the business going forward.
IF you are jumping in and out of shares day to day, you are likely going to miss out on compounding.
IF you are jumping in and out of shares day to day, you are likely going to miss out on compounding.
Posted on 8/26/22 at 6:19 am to Bjorn Cyborg
Well you make 20% or so less if you cash out short term. Do you think the stock will drop more than 20% in the short term? Does it have potential to go up?
Volatile stocks like meme stocks, I would cash out because generally those are hype driven and wayyyy over priced. Stocks that bounce on earnings reports or actual technical breakthroughs, I would hold.
Volatile stocks like meme stocks, I would cash out because generally those are hype driven and wayyyy over priced. Stocks that bounce on earnings reports or actual technical breakthroughs, I would hold.
Posted on 8/26/22 at 6:29 am to keakar
quote:lol no. Much better chance you get your arse burned bad with that mindset and lose out on tons of gains
you can make 10x more by buying the dips and selling the highs then you ever will do by just holding everything long term
Posted on 8/26/22 at 7:49 am to keakar
quote:
you can make 10x more by buying the dips and selling the highs then you ever will do by just holding everything long term
The world's best investors can't consistently beat the markets by 2x, much less 10x. If they can't do it, I'm under no delusion that my retail arse can do better
Posted on 8/26/22 at 8:28 am to Bjorn Cyborg
There’s no such thing as a long term hold these days. Our “economy” is shrinking and the djia gonna be like 12 in 2025 when kamala starts her term
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