Selling Stocks to take profit

[mathjak107]

Originally Posted by MI-Roger

I disagree.

Many of us will have 30+ years of life expectancy after retiring. The money a person needs in years 1-10 should be in low or no risk investments. The money a person needs in years 21-30 should be allowed to continue growth.

But we each have our own level of risk tolerance.

sounds comfortable .

[TuborgP]

Originally Posted by BabyJuly

I know of someone who invested in Bitcoin and he recently was on FB ecstatic that the price kept going up. Now the price has dropped significantly. At the height of the boom he was advised to sell just 25% (if he could stand the tax impact) and realize some profit. Was this bad advice? He did not sell.

Selling Bitcoin isn’t the easiest thing to do and fees are high. From what I understand crypto currencies are most often traded for each other.

[mathjak107]

you can dabble through fidelity . it is like buying an etf .

last week my wife saw it fell in to the 9k range so she asked if i would take a shot . i don't track it but it fell a huge amount and that peeked my interest .

so i did it , it went up about 13 or 14% and we sold the next day . glad we did , it was all down hill since then .

we used gbtc.

[Zymer]

Originally Posted by BabyJuly

I know of someone who invested in Bitcoin and he recently was on FB ecstatic that the price kept going up. Now the price has dropped significantly. At the height of the boom he was advised to sell just 25% (if he could stand the tax impact) and realize some profit. Was this bad advice? He did not sell.

Bitcoin is highly speculative and, being so, is a different animal from 'normal' 'investments'. In fact, Bitcoin should not be treated the same as a regular investment, actually, it should not be treated as an investment at all but rather in the same manner as a penny stock- it's a gamble, a bet in a poker game...you need to know when to hold 'em and know when to fold 'em, know when to walk away and know when to RUN.

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I have two different strategies for the stock market, one for my long-term investments in my retirement accounts and a different one for my short-term *trading* account. Short-term trading strategies are very different from long-term investments. In short-term trading my goal is for a 2-10% [average] weekly gain in overall portfolio value- buy on a rise, losers are quickly culled and runners are set with a certain (variable) % trailing stop-loss that locks in profit when/if momentum reverses. Using this strategy results in more reliable (and, on the whole, greater) increases in capital than those fools who hope for a 'double-bagger' or 'triple-bagger' on a single stock.

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Here's something I wrote on penny stocks a couple of years ago:

New to stock market.

[leastprime]

I took profits.
Lots of reasons.