Can’t go broke taking profits

by gbsmith4

The “can’t go broke taking profits” line has been around for as long as I can remember, but of course it’s not true.  You CAN go broke taking profits, if those profits are greatly outweighed by your losses.

That said, there always seems to be at least some point where a trade goes in your favor and you have to cash in.  I don’t know quite how to describe it, but I almost get a tingling feeling when I look at my quote screen, telling me it’s time to sell.  And I’ve learned over the years to abide by those feelings and not wait around for further gains.

Trust me, I’ve gotten it wrong many times — the @#$% stock continues to run — but more often than not I’m happy to book the sale and move on to the next trade.