Profit taking strategies

Investing and Markets 📈 Portfolio Management ⚖️
1

Hi everyone,

I’m curious to learn how other investors here handle profit-taking strategies. I recently took some profits on a stock that was up +39% but noticed that my platform still shows the same profit percentage, even after selling a portion of my shares.

Given this, I find it challenging to know when I’ve hit my profit thresholds again. How do you track your gains and determine when to take profits? Do you use any specific tools, spreadsheets, or alerts to manage your strategy?

For reference I am a long term investor however I want a strategy that helps me realise profits for stocks that exceed a certain threshold and that I think the price might be short lived.

My ideal situation is when I notice a stock that exceeds 20% profit (e.g 28%). I want to pull money out of the position to reduce it back to 20%.

Looking forward to hearing how you all manage this!

Cheers
Ben

1 Like
2

Hi Ben,

I personally use a combination of various tools including stock events and dividend watch amongst others. With the latter you can record any sales and it is free to use for up to 10 stocks.

In terms of profit taking, this is really down to your own risk tolerance, investment horizon and personal preference. I usually trim from any individual position that exceeds 10% of my portfolio (excluding ETF’s) and is in the green. I also sometimes take any profits when over 45%, as my view is why cut unnecessarily from a strong position that is giving you good returns.

2 Likes