How To Sell Stocks: When To Take Profits | Learn How To Invest: IBD
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- เผยแพร่เมื่อ 1 ก.ค. 2019
- Figuring out when to let go of a stock can be a tough decision to make, and there are basically two types of selling: Defensive selling to cut your losses, and offensive selling to protect your profits. Let’s take a look at a key offensive sell rule.
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So you sell when it’s up 25%, and buy the same stock again when it dips? If you can miraculously track that...
Awesome. Content is on point and very good. Nice and calm speaking Lady to present this. Well done. You should get more views and likes.
Investing in the stock market is lucrative but can be a tricky game, and if you’re not careful, you may make some grave investment mistakes that could cost you a lot of money.
Often investing in stock is risky that draws attention to the immense losses and gains. Investors should be cautious when it comes to investing in the stock market and understand that nothing is a sure bet
That's right Phillip, It's important to approach all trades with a developed and tested strategy because the market is hard to predict, and it often results in trading mistake.
Putting money in the stock market can be confusing, i have made lot of trade losses and it's discouraging.
Every trader can earn decent payouts at times. however, those aiming to have a regular income from trading might need a consistent profit trading strategy.@Aurelio
@@artiganesh8032 These past months hasn't been great, lost $9800 already. What am I not doing right?
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Thank you for your feedback! We appreciate your comments and look forward to delivering lots more content for you.
Why didn’t I found your channel sooner ..thanks for explaining it well !
Awesome straight to the point
Great explanation and perspective in realistic trading/selling. Thank you.
Hi,
Sorry but I truly have some doubts which I hope you can still help me with.
If the point to take profits is when the stock has gone up 20-25%, how big should be the cut size? Meaning, do you sell only the equivalent money gained over the initial investment, or is it also another percentage of it.
Cutting loses, do you cut loses if the retreat goes below the 7% of your original purchase price? Or, 7% under the last buy point if it is different from the original purchase price?
Thanks for the value information ....
Nice video . Straight to the point .
This is exactly what I was looking for. 💯💯💯. Trying to figure out what to do with my “PLUG” shares. I bought in back in June .Open to any other advice.
Well explained and succinct.
Love this video.
20 to 25 percent profit! Thanks! 👍
Great video, you need to produce more. Can you make a continuation of this video and the buying signals to reinvest in what you pulled out of ? I've tried to hold myself accountable to a 30% sell rule on the upside but, I stopped doing so from my fear to buy back in. I've also lost opportunity on some stocks by not letting the bull market run it's course selling 70% of shares owned to lock in 50% profit. While the 30% of shares invested continued to run to 150% gains. Any advice on this?
This same approach has caused me more losses than gains. Now the goal is to always exit trade with green, as a day trader waiting for maximum gain is greed and the negative effect can very hurtful especially with high volatile stocks.
Good point
Hi thanks for this. Question, do you sell the whole stock or take out profits?
So do u just sell ur profits? Or what u put in as well, before the dip?
Excuse me if this is a brain fart on my part, but I was wondering : If I own 20 stocks and have 25% gains on them, and I want to extract only the gains, but keep as much of the stocks as I can (after removing that 25%), how should I go about it? Straightforward, I'm thinking of selling as many stocks as I got to to accumulate the 25% in liquidity (and not touch the remaining stocks), then leave it all as it is.
In another case, which I did once, selling all the stocks (so, exiting my position) then reinvest the liquidity (except 25%). In this case, I'm guessing it's important to sell in portions through time to mitigate the risks. But the stock in question now is worthy of keeping (I just want to extract the gains).
This is sort of a self-reflexion I'm writing for myself, but if people can confirm or add to it, I'd be thankful. I don't often buy nor sell my stocks, so I am not sure of such basic things.
It would be better not to exit and re-enter for tax purposes, you are better off selling profit only and even then maybe not all profit as depending on your income and tax bracket, plus the fact that if you sell at less than a 1 year hold you are taxed at a higher rate
I usually choose to sell specific shares when I’m taking profits. I’ll sell some of my more expensive lots to lower my cost basis. By doing this I’m really taking more of the original principal back rather than the actual profits. My thinking is it’s better to leave the unrealized gain so it can eventually be considered long term capital gains. Psychologically I feel I’m taking out my original money and leaving more house money in the investment too. Is this a strategy commonly used or do people take the actual profit? Or does it even matter? Any advice would be appreciated. Thanks.
This is a good question that’s what I want to know
Any update on this strategy? With a potential future downturn coming this theory crossed my mind. Lack of experience leaves me unsure.
I have a question. Somebody please give me an answer.if I put $1,000 into a stock and I am up to $1,300 on it. Do I have to sell the entire $1,300? Or can I just sell the profits
of $300 and continue investing the original 1000. And then taking that 300 profit and investing in elsewhere.... What is the best way to go about that
I have the same question
Take 300 and keep cash or reinvest
Is this correct?? Does it work like this
No.
@@stevena3333 what to expand on that?
I've listened to you and sold my Nvidia stocks while ago at 200 dollar (100% profit) , look at it now ...
Which buy point? Pivot points? Analyst prices? I’m good at buying just not the selling.
Hey guys,
I'm confused on what the "buy point" is. Let's say I buy a stock for $10 and its increased to $12 per share (20% profit) - is my buy point $10 right?
yes
A buy point is a price level at which a stock is most likely to begin a significant advance. It also points to an area of the chart that offers the least amount of resistance to price progress.
Here’s an Investor’s Corner on buy points - what they are, how to identify them, etc.
www.investors.com/how-to-invest/investors-corner/chart-reading-basics-how-a-buy-point-marks-a-time-of-opportunity
We appreciate your feedback, Ed!
thank you so much, people usually just say "never sell! ò.ó"
So do you sell all your shares of a stock when it reaches 20-25?or sell a portion of them?
With NVIDIA, I'm pretty sure I sold at more than 25% above the buy point, but I'm kicking myself for having sold all the shares. I believed in Nvidia stock regardless of the negativity of mid-late 2022, so I had kept buying as it dropped. When it rose, I was so relieved that it had recovered and was going up, and I was so wary of the potential for it to quickly return to loss territory, that I wanted to give myself peace of mind by selling it off. I should have believed in myself more, only sold half of it using a "stop limit on quote" order, & found out how high the rest of it would ride up.
when you say take profits at 20-25% do you mean, only sell the profit made and keep initial investment, or sell the whole investment
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so do you sell 100% of the stock, or just the 20% profit?
Just the profits
Whats the best profit percentage to sell the stocks?
At 20-25 % should we sell all the shares or sell 50% of shares and let the other 50 % hold untill it completely reverses?
same question
If I have 140 shares and have a profit of $130.00 during the day and want to take my profit, is it OK to sell just enough shares that equal the profit? My buy in cost was $11.41, so I sold 11 shares to recoup the profit, does this create any problems?
Did you ever figure out?
Im about to start trading but my initial strategy is what ever i invest in, if it doubles in price i sell half my shares to secure my initial investment
Then invest that profit into another company, rinse and repeat when i double again
This is in the speculative portfolio (Obviously im not gonna gamble everything on 100% possible stocks)
I wanna see if i can turn $1000 into way more
@@Mistyfgdf I have everything under control now. Doing fairly well.
@@Drumbeat52 so what did you do? you sold the profit?
@@Drumbeat52 like I bought some shares at 500 now its 515$ do i just sell the 15?
@@robertistrate8280 I would only take a profit if you could make 20/30% profit. You can pretty much do whatever you want.
How do you sell stocks the companies have made it plain they don't want you to actually sell? Inherited stocks I'd rather not keep despite their doing fairly well. It's been a rough few years dealing with them to no avail. (Well, they did offer to sell them for me for 10% fee plus I pay the taxes on that, plus they get to keep my money for two months to finalize the deal.)
Can't say I'm interested in buying more stocks at all after this fiasco. 🤨
What about hold times?
I'm not sure I agree with her assessment at the end there. I own a stock that I bought at .50 cents a share. I believe it will go to $30 a share in the next two to three years. I know there is about to be a catalyst next week that will send the price to about $3.00 a share and then "probably" a pullback to somewhere around $2.00 The catalyst is further good news that makes my original $30 a share thesis much stronger. I highly highly doubt the price will drop back below .50 on the pullback and if it did I would just buy more shares again. So what is my incentive in profit taking early other then eliminating all risk for pennies on the dollar?
Can you earn while your stock is on hold waiting to be sold ?
I wish I had known this principles of investing and went to take profits, I had gained 300% in crypto and I lost all of it hoping that it will reach a million dollars 🤣😤 😭 but I still get a second chance now since everything is on sale rock bottom prices and it's still going down 👍
I’m a little confused on how to keep track of shares for example of one particular stock.
If you buy multiple shares over a course of time and you bought them at different prices when you want to sell some how do you keep track or sell the ones you want to sell that were bought at your best or worst price?
rotaxrider great question!
I use yahoo finance my portfolio and add some notes. Or the old grandpa fashion - a piece of paper and pen.
Actually most brokers have a few methods for selling stock but the most common is first in first out and you set that up at the time of selling.
Greg is right. If you buy at different prices, on different days, you sell in the order you purchased them. Be careful. This can be tricky with a lot of purchases.
steven shawzy But different in Canada as it averages out your buys for an average cost price.
Please where is the video on defensive selling? I cannot find it.
are there any profit taking stratagys to grown an account?
Did you ever figure out a strategy?
Im a long term investor so i wont be taking profits although I will have a small portion of $2000 in robinhood for speculative trading
Basically I buy a stock, when it doubles i sell half and put that profit into another stock, rinse and repeat
@@Mistyfgdf so you end up selling a fraction of your stock in other words your basically selling 1/2 of a stock right?🤔🤔
@@cesar_mufc1091 The strategy is basically imagine you buy 100 shares of a company for 1 dollar each, The share price double (100% gain) and each share is $2 now
Now you sell 50 shares to protect your initial investment, and allocate that money elsewhere, leave the other 50 shares to grow
Rinse and repeat
@@cesar_mufc1091 But im totally not following my rule i made a year ago, Source: My channel because im just holding some shares over 150% gain
@@Mistyfgdf In this scenario does the $100 of unrealized gains get taxed even when you reallocate into another stock?
Do I sell just the profit above the principal invested?
Cut loses at7-8%, take your profit at 20-25% benchmark as historically stocks pullback after it reached 20-25%.
Or the riskier/greedier approach = cut loss at 10-15% and profit at 50-100% :D
@@SQU1NTZ Yeah i was looking to take profits at 100%
when you say take profits at 20-25% do you mean, only sell the profit made and keep initial investment, or sell the whole investment
Unless you bought at 2% above ideal buy time, then you would take profits at 18- 23%
this makes a bit more sense in actually SELLING
i hold a stock, whose net change is +230.07% right now :D
me too and i still cant understand how to actually get the money and use it . well with this i kind of do
I just sell at least 10% higher from buy price.
anyone can help me here? i wonder if i can set a Limit buy and combo with a stop loss and stop take profit all in the same time. so i just set this 3 together go to do my side stuff and prevent it from losing my money on the other hand i can lock in my profit. im using IBKR.
If you are asking this, the game is not for you. Just play safe and put $ in index funds! My only strategy is how not to lose $ and profit will come along. The more you time the market and quick flip the more you will lose big. Stay away from pharmaceutical, mining, oil and gas, internet clouds stocks, lots of them are pump-and dump with fake news and rumors. Like in casino, it's not designed for you to make quick profit. Have a vision of 5 years how far your stock can go and the competitors then have faith but tweak a little along the way.
@@dean3583 can you kindly list oit done index funds that is save? Cos i cant find any.
@@ritch90 Use yahoo finance and type energy select sector fund. Ticker is XLE. Again, commodity is not for the inexperience. The first four years you will lose big and only play with money you can afford to lose. You can play with virtual money simulator trading in Investopedia website to gain experience. Your own bank should have the Web broker Website that links to your saving account. That's where you buy, sell stocks, and search for stock's information.
Nah bro, buy high sell low
can i take money out of my stocks if i need it
She reads it well
Seems a bit like a self full-filling prophecy. If selling to take profits 25% after a buy point is a know rule, couldn’t that cause a stock to dip after every 25% gain?
My broker would be more than happy if I keep making trades XD
Elon musk be like hey hold my beer brah.
20-25% seems high
Right now it is high but during a bull market, 20% - 25% is pretty realistic if you have a good stock.
This is BS. This doesn't take into account the intrinsic value of the company you purchased in the first place nor the tax implications of selling (which swallows a big chunk of the so called "profits").
Hahahahahaha
The one thing that's certain
Taxes
I wouldn't say it's BS. An oversimplification perhaps. But even if there are tax implications, you'd still want to lock in gains with the intention of re-entering at lower price. The premise of the video isn't so much based on the intrinsic value of stock but more akin to momentum trading where stocks can more easily become overextended and there is a high chance of some sort of reversion.
What are your opinions on lets use $1000
Buying a stock, it gains 100% (So it doubles) and selling half to put into another stock
rinse and repeat? Taxes suck but for a young person taxes are low
Whats your take on this strategy?
@@Mistyfgdf that’s a good way to grow your portfolio
@@jeganka Man have i changed in the last 1 month
Half my networth is now in OTC Penny Stocks
Source: My Channel, But the plan i made 1 month ago will be used in my robinhood account
What is her name?
Baby
Instructions unclear. So your saying just hodl indefinitely? Got it.
BS