Newbies Investing Questions

[bar1080]

Q: Thoughts on taking profits? A:

The huge problem with "taking profits" is that stocks people sell tend to outperform stocks people buy. That's been shown on two well funded academic studies. Put another way: "The More You Sell The More You Lose."

There are sensible reasons to sell, but most IHUB type traders sell because of hunches, whims and silly charts. Huge costs to investing that way.

Good reasons to sell or trim a holding MIGHT include: To grab a tax loss or to prevent a soaring stock from becoming too dominate in a portfolio. but note that winners should generally be retained. I sell most losers quickly but I rarely have them.