fam401 Re: Profit taking doesn't have to be an all or nothing situation. There's all different ways to go about it and it depends upon your trading style and objectives for the stock and your portfolio. One of my fears going into trading was... the fear of missing out on a big run right after I sell. Or missing the top. Finding the top or the bottom is a fools game. As long as you find profit in the trade, that's all that matters.
With each and every profit that I've taken on a stock, and as they all add up now, I've realized that I could care less if it rallies hard thereafter. For me, I've gotten a profit and that's the goal, and move on. Each and every profit I take, adds up to that monster rally overall. Also, moving on doesn't always mean leaving that stock completely.
One theory for a stock that you really like, and think has room to roam still, is to sell 1/3rd on the advances and keep 2/3rd as your core. I almost always sell into a rally and not wait for a down day.
By selling a little off the top, it "locks in some profit" - thusly giving you not only $$$, but confidence. If it drops a bit, you can buy it right back. If it rallies further, that's great, you still have 2/3 left.
Congrats on your entry on FPMI and holding into this run! I typically have a few price targets in mind based upon catalysts, support/resistance lines, and the overall markets. Sometimes its an 'all or nothing' or 1/3rd sell here, 1/3rd there, etc. Selling in lots works too when you're unsure.
Best of Luck! Keep up the good work.
These thoughts are just mine, not right, not wrong, just thoughts. Invest in what you believe in, not what I believe in. Do your research, and invest in the facts.
