Shares/Stock Let The Profit Run vs Take Profit, Which is Best?

Suba

Moderator
Staff member
I will concentrate these two terms on stock investing (not stock trading), Let's discuss them together:
Let the profit run is a stock investment strategy where the price goes up but we don't sell it immediately. Why. Because this strategy expects the increase in stock prices to be at a peak, of course the limit for this stock price increase has been determined by the cash loss indicator. This strategy is suitable for medium or long-term investment activities, such as saving stocks. In long-term investment, big profits are not the main priority, but profits and stock price stability are more important. This strategy can be done when the stock is in the top trend. Investors will hold shares to a limit that they set for themselves. This aims to see the extent to which stock prices have increased in order to seek the highest profit. Therefore, this strategy relies heavily on patience.
Take Profit is a term in a stock investment strategy where investors sell most of their shares after their profit targets are achieved, to prevent the risk of falling stock prices in the future. So in your opinion, which is better, Let the Profit Run or Take Profit?
 
Each strategy has its advantages and disadvantages. When it comes to allowing the profit to run, you can risk losing some or all of the profits, sometimes even capital if there is a flash crash.

When you choose to take profits, you can miss out on more gains, as no one can accurately predict the top of a market and how much profit is left to be made.

I think a combination of the two would work better. You can purcahse stocks and sell at regular intervals, but always leaving a good amount of it as soon as you have secured your capital.

You can also have two portfolios. One would be used for either strategy and you can decide which works best for you.

Personally, I use a combination of both on the same portfolio.
 
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