Do You Have Your Own Take-Profit Strategy or System?
It’s often said in the market that knowing when to sell is more important than knowing when to buy!
When to buy?
Be patient when buying, but decisive when selling.
In many cases, when we buy a stock, we’re actually buying into an expectation of the future. But when we sell, it should be an act of decisive harvesting.
Why patience when buying?
Because the stock you buy represents your conviction in the market. That conviction should come from a comprehensive understanding of valuation, growth, and intrinsic value. Once you’ve bought it, you should have enough confidence to hold and wait it out. As the saying goes, “If you believe, believe early; if not, don’t believe at all.”
We’ve previously discussed how to use technical indicators to identify entry points—let’s also take a look at what other tigers use as buy signals! If a Stock Is Too Strong, What Signals Tell You It’s Safe to Enter?
When to sell? You must be resolute!
Once your psychological target is reached, sell. Everyone’s expectations and tolerance levels are different.
Or you can refer to these types of take-profit systems
The determination to sell is our weapon against greed.
Even if you know the stock will probably rise again tomorrow, you still need to stick to your trading strategy and sell. Selling actually requires more courage than buying, because it directly confronts human weakness and fear of missing out. That’s why selling demands stronger mental armor and preset rules.
When you find yourself hesitating about whether to sell, just ask: “If I were currently in cash and saw this stock at this stage, would I buy it?” If the answer is no, then it’s time to sell.
Those who know how to sell are the masters; those who only know how to buy are the apprentices.
What’s your take?
Do you have your own take-profit system or strategy?
What technical indicators do you use?
Do you find profit-taking system helpful for improving your performance?
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1. check the previous swing higha, these can be resistance
2. check moving average resistance if price is under. moving average also act as resistance if price is under.
3. check Fibonacci extension if price break out and above moving average
4. check if there's flush up price action ( vertically 90 degrees)
if you don't feel like selling all, can sell a portion to preserve cash.
I have a set of stop profit ideas myself, but I won't apply them rigidly. Generally speaking, I will set the expected target before buying, such as the 15%-20% range, and sell in batches when it is in place. This can avoid greed and keep some positions to continue to enjoy the trend. If the market suddenly overheats and the price is too far away from the moving average, I will also decisively reduce my position.
In terms of technical indicators, I mainly look at RSI and moving averages. I will be wary if the RSI exceeds 70. If the stock price is too out of touch with the 20-day and 50-day moving averages at the same time, it is often the opportunity for me to partially take profits. In addition, the dead cross of MACD will also trigger me to lower my position.
From experience, systematic profit-taking strategies do improve overall performance. Its value is not that I can always sell at the highest point, but that I can stably lock in a reasonable profit and avoid ups and downs. In the long run, a stable capital curve is more important than an occasional gambling on a huge profit.
當你發現自己在猶豫要不要賣出時，只要問一句：“如果我目前有現金，在這個階段看到這隻股票，我會買入嗎？”如果答案是否定的，那麼是時候賣出了。
I rely on both technical and psychological checkpoints. Technically, I watch resistance levels, RSI signals, and moving averages. Psychologically, I ask: “If I were in cash now, would I still buy this stock at this price?” If the answer is no, that’s my clear signal to sell.
Profit-taking systems help bring discipline and consistency. Without them, it’s easy to get swayed by short-term moves or FOMO. By sticking to preset rules, I reduce regret and trade with confidence. In the end, knowing how to sell well separates a disciplined trader from a lucky one.
@Tiger_comments @TigerStars
My approach of selling the UT is.. I will ensure the price is stabilise at my price. Hence, it is a few days of monitor before I hit “sell” button. This is to ensure that my profit is secure. Instead of trial and error to get a good price. In the event, if the price is not stabilised, I will wait for the next window.
@MHh @Universe宇宙 @melson @Wayneqq @rL
My strategy depends whether I am trading or investing in the stock. If im trading, I would go with absolute profit or percentage rise. Once the stock has risen 5-10%, I prefer to take profit. Sometimes, if the potential profit is at least $500, I take profit too. It is always better to have earned less than to be a bag holder. If im wrong and momentum continues going strong, I might swing trade again if the stock still looks promising to climb and remain fundamentally sound.
If I’m investing in the stock, I would trim if percentage in my portfolio has exceeded what I’ve set so that I manage my risk. Of course, I may also buy back to balance back my portfolio.
I am new to trading and finding hard to find real, genuine content on helping me how to learn and make money and preserve capital in trading, otherwise all i see on internet is make $10,000 every day by doing xyz…..
This was great, terminology a bit too much for a newbie but that’s something I can work on I guess
I have noticed know when to exit the market is probably the most crucial decision we make , i guess similar to when at casino and winning but knowing when to cash in the chips and walk out is really the key difference
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