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?

2 Answers

  • 4 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

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  • Bryce
    Lv 7
    4 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.

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