RE: Where next for the SP?14 Feb 2022 17:45
Hi D: If I did not get the opportunity to sell at 30% because it jumped to 50%, then I would sell 60% at the 50% profit price, which would almost be risk free for the remaining 40% of the stock holding.
It just depends on what you are trying to achieve.
I am used to trading frequently and its very common for stocks to give up some or all of their gains as quickly as they arrive, even if its just a retrace.
I always have the option of buying in again, in your scenario at a lower price if it does retrace. And if the SP just keeps rising well, I still made money selling at 50% profit and I still have 40% of my original holding making money on the rising SP.
So its wyn/wyn.
The only thing that could be criticised is that it is (in your scenario) not maximising profit, but, you will only know that by being able to look into the future or after time, using hindsight, the former being impossible and the latter not much help either.
This is hard game to constantly stay ahead in and my experience has taught me to bank profit and try and balance the potential of missing out on a multibagger for still finding a system that allows me still to have good returns.
The old maths stat that says if you had 1p and you bet it on red or black on the roulette table, how many times, if you let the winnings ride, would it take for you to become £millionaire is....
wait for it.....
32
Don't need to be greedy to make a load of money but you do need discipline (imo) :0))