Best way to take profits while still holding position?
Mathematically, how do you ride a stock up while taking profits along the way? Like say I have 1000 shares. Would you sell 10% every 10% and buy if it drops 20% from the 10% gain? Or even sell half at 20% buy again if it drops 10% from the 20% gain. Or should I sell x amount at 5%? What is the best plan based on average stock price movements?
- Roger the MoleLv 74 weeks ago
This is not a question about Mathematics. You're likely to get more and better answers by moving it to All Categories > Business & Finance > Investing
- BryceLv 74 weeks ago
Over the last forty years the S&P 500 stocks have a compounded average annual return of 12%, including dividends. Why not just buy a mutual fund in that and just sit back and watch it go up over time. No work, no sweat, no worry. Short-term trades are taxed at the highest rate. The mutual fund is very tax efficient.