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Started By
Message
When do you take profits and/or reallocate positions?
Posted on 6/1/26 at 4:22 pm
Posted on 6/1/26 at 4:22 pm
Mind you, this is more about individual stocks than ETFs or index funds.
I've been trying to come up with some portfolio rules when it comes to % of portfolio weight and am struggling to find the balance between what financial advisors recommend and what I'm personally comfortable with. The AI boom has created some big swings to my portfolio in a positive way, but I can't stray too far from logic and risk a lot for a little more.
A lot of advisors seem to suggest keeping any single stock around 3-5% of your portfolio. The "problem" I have is that several long term positions have appreciated quite a bit over the years. I also have a few short term positions that have run hard in a short period of time. In both cases, stocks that started as small positions have grown well beyond that 3%-5% metric suggested.
On the flip side of that, some holdings that started around 2% have become almost irrelevant at less than 1% of the portfolio due to the massive gains of those stocks growing parabolically. I still like the companies and haven't lost conviction, but their impact on overall performance is basically a rounding error at this point. Some of you may say to DCA with the stocks I like, but for individual stocks, I typically go in with what I'm comfortable with at the start. My DCA strategy goes towards my monthly buys of broad market ETFs.
I hate the idea of stepping off a stock that's still trending higher, but eventually that position becomes a pretty large chunk of the portfolio and adds a lot more risk than it did when I first bought it. Outside of speculative "lottery ticket" plays that can go up 200%+ if you get lucky, how are yall handling positions that grow well beyond 5% of your portfolio?
Do you let your winners run? Do you trim winners to a set % of your portfolio?
If you're trimming, are you moving the proceeds into something broad like SPY or VOO, or into other individual stocks?
inb4 "you cant time the market".
TIA
I've been trying to come up with some portfolio rules when it comes to % of portfolio weight and am struggling to find the balance between what financial advisors recommend and what I'm personally comfortable with. The AI boom has created some big swings to my portfolio in a positive way, but I can't stray too far from logic and risk a lot for a little more.
A lot of advisors seem to suggest keeping any single stock around 3-5% of your portfolio. The "problem" I have is that several long term positions have appreciated quite a bit over the years. I also have a few short term positions that have run hard in a short period of time. In both cases, stocks that started as small positions have grown well beyond that 3%-5% metric suggested.
On the flip side of that, some holdings that started around 2% have become almost irrelevant at less than 1% of the portfolio due to the massive gains of those stocks growing parabolically. I still like the companies and haven't lost conviction, but their impact on overall performance is basically a rounding error at this point. Some of you may say to DCA with the stocks I like, but for individual stocks, I typically go in with what I'm comfortable with at the start. My DCA strategy goes towards my monthly buys of broad market ETFs.
I hate the idea of stepping off a stock that's still trending higher, but eventually that position becomes a pretty large chunk of the portfolio and adds a lot more risk than it did when I first bought it. Outside of speculative "lottery ticket" plays that can go up 200%+ if you get lucky, how are yall handling positions that grow well beyond 5% of your portfolio?
Do you let your winners run? Do you trim winners to a set % of your portfolio?
If you're trimming, are you moving the proceeds into something broad like SPY or VOO, or into other individual stocks?
inb4 "you cant time the market".
TIA
12
Posted on 6/1/26 at 4:52 pm to Snoopy04
if you don’t sell into strength you will sell into weakness. Take prudent profits on the way up assuming you sized properly to begin with…meaning, you bought aggressively at your entry knowing you would sell a portion to assure profit, and you didn’t chase
it helps to buy in lots then sell in those same lots. Makes it easier
it helps to buy in lots then sell in those same lots. Makes it easier
This post was edited on 6/1/26 at 4:53 pm
Posted on 6/1/26 at 4:54 pm to Snoopy04
Never bruh
A real picker only picks stocks that go up forever
A real picker only picks stocks that go up forever
Posted on 6/1/26 at 4:57 pm to Snoopy04
I’d probably say lock in some gains and periodically raise your stops on the remainder.
Posted on 6/1/26 at 5:39 pm to Snoopy04
i keep money in a stock until i think i can do better somewhere else. If i don't think a stock will outperform S&P 500 in the next 6 months not planning on keeping the investment or very least reduce the $ in the position.
Posted on 6/1/26 at 6:15 pm to Snoopy04
Be an investor:
Compartmentalize and have an objective and timeline for the money (retirement, college savings, a daughter’s future wedding, travel world funds, etc).
Nestle all that into overall portfolio view.
Your Stocks, bonds, cash/equivalents allocation % to achieve each of the objectives is built bottoms up. Aggregated, your overall allocation mix is determined.
As markets go, you will need to rebalance. Some say annually. Pick right frequency that makes sense for you.
You are effectively selling high and buying low per your rebalancing to your target portfolio mix per frequency you choose.
Coincidentally, institutional investors (eg, pension funds, endowments) are required to do this and likely influencing the very prices you inquire about in so doing.
Compartmentalize and have an objective and timeline for the money (retirement, college savings, a daughter’s future wedding, travel world funds, etc).
Nestle all that into overall portfolio view.
Your Stocks, bonds, cash/equivalents allocation % to achieve each of the objectives is built bottoms up. Aggregated, your overall allocation mix is determined.
As markets go, you will need to rebalance. Some say annually. Pick right frequency that makes sense for you.
You are effectively selling high and buying low per your rebalancing to your target portfolio mix per frequency you choose.
Coincidentally, institutional investors (eg, pension funds, endowments) are required to do this and likely influencing the very prices you inquire about in so doing.
This post was edited on 6/1/26 at 8:00 pm
Posted on 6/1/26 at 6:48 pm to Snoopy04
Sell covered calls for a strike price that brings a smile to your face currently.
Make money either way.
This is my derisking strategy.
Make money either way.
This is my derisking strategy.
Posted on 6/1/26 at 6:51 pm to bayoubengals88
I sold a weekly CC on NBIS at $325 and got a $125 premium. My cost basis is $75 so if it sells I will buy more OUST.
Posted on 6/1/26 at 6:57 pm to Snoopy04
When I no longer see the value, I’m out. Could be weeks, months, years or decades. There’s no science
Posted on 6/1/26 at 7:00 pm to bayoubengals88
quote:
Sell covered calls for a strike price that brings a smile to your face currently.
Bingo. I’ve got 2 AMD 500s that I will happily part with. Then I’ll sell puts on Meta or Microsoft
Posted on 6/1/26 at 10:20 pm to Snoopy04
I trade at the end of every quarter. The only time I trade within the quarter is when my chosen stock ETF doubles in price during the quarter. In that instance, I sell down to restore a base allocation between it and a bond fund. Intra-quarter selling has never happened in the past 10 years -- until today.
This post was edited on 6/1/26 at 10:22 pm
Posted on 6/2/26 at 12:13 am to Everyday Is Saturday
(no message)
This post was edited on 6/2/26 at 12:14 am
Posted on 6/2/26 at 4:34 am to Snoopy04
quote:
Do you let your winners run?
My biggest mistakes have been selling winners too soon.
Posted on 6/2/26 at 4:40 am to Snoopy04
One reason I quit buying individual stocks, never had a good exit strategy and tax aversion leads me to hold too long. Slowly divesting my positions by harvesting LTCG in zero bracket and gifting shares to family so they can sell in zero LTCG bracket.
Now I only buy individual stocks (rarely) in retirement accounts with no tax drag on reallocation.
Now I only buy individual stocks (rarely) in retirement accounts with no tax drag on reallocation.
Posted on 6/2/26 at 5:53 am to Snoopy04
I don’t know the answer to the OP. I sold all my NBIS during the dive and had to watch the roar back up to $220 from the sidelines.
I also sold BRUN/WLAC at $25.
I made money on both but absolutely sold at the wrong time. I least I still have my 100 shares or Merlin that I’m underwater on.
I also sold BRUN/WLAC at $25.
I made money on both but absolutely sold at the wrong time. I least I still have my 100 shares or Merlin that I’m underwater on.
Posted on 6/2/26 at 6:28 am to supadave3
quote:
I sold all my NBIS during the dive and had to watch the roar back up to $220 from the sidelines.
But did you sell because you were trading it or because you were happy with your profits from the stock.
If the former, that’s just the game you signed up for when trading.
If the latter, then your vision for the company wasn’t as grand as others.
Traders sell at percentages gained.
Investors seek to understand the company and its worth.
Which were you?
We should all be asking this question about everything that we buy.
This post was edited on 6/2/26 at 6:29 am
Posted on 6/2/26 at 6:32 am to Snoopy04
I'll use sites like this: UNH Example.
Or this one: KEEL Example.
Watch it towards the target prices. I download these into Excel and monitor. If it's nearing upside target, I reevaulate the stock. Just because it goes up doesn't mean I'd sell. Something like NVDA you might hang on for a significant period. My UHN stock I have had through an ESPP since 2018. Why sell if you don't need it?
I have an account at Fidelity. Set a stop loss of 80-90% on the downside to prevent losing significant capital.
For all of the above maybe I have 30-40% in various individual stocks. The others are in highly ranked ETFs or Mutual Funds. For those, I just put a set amount in weekly automatically out of a cash account.
Or this one: KEEL Example.
Watch it towards the target prices. I download these into Excel and monitor. If it's nearing upside target, I reevaulate the stock. Just because it goes up doesn't mean I'd sell. Something like NVDA you might hang on for a significant period. My UHN stock I have had through an ESPP since 2018. Why sell if you don't need it?
I have an account at Fidelity. Set a stop loss of 80-90% on the downside to prevent losing significant capital.
For all of the above maybe I have 30-40% in various individual stocks. The others are in highly ranked ETFs or Mutual Funds. For those, I just put a set amount in weekly automatically out of a cash account.
This post was edited on 6/2/26 at 6:49 am
Posted on 6/2/26 at 6:45 am to makersmark1
quote:Timing sells, to me, is more difficult than timing buys. But unless a stock has an unstable/unsustainable run, tax liability leans against tendencies to sell winners prematurely.
My biggest mistakes have been selling winners too soon.
Posted on 6/2/26 at 8:50 am to NC_Tigah
100% this.
I tend to hold them too !omg due to the times I sold winners too early.
I tend to hold them too !omg due to the times I sold winners too early.
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