shaun Rosenberg

Benefits of taking Partial Profitst

Taking partial profits can be a good thing in the stock market.  It can help to limit your risk and heighten your confidences.

                Taking partial profits can be a good thing in the stock market.  It can help to limit your risk and heighten your confidences. 

                Now for all those who don’t know what taking partial profits means it is you has a position that has given off a big win.  You believe it can go higher and are not ready to sell it, but you want to see some of the money so you sell a portion of your position.

                This may be 50% or 20% or whatever percentage of your total position you want.  Remember the less you sell the more aggressive you are being.  There are many reasons why taking partial profits can help you.

1.       It can help to make sure a trade was a win.  If you have a winning position you can always sell some of your shares for a profit and tighten up your stop for the remaining shares (while still giving it room to move).  This could insure that even if the trade goes against you now it will overall be profitable.

2.       It can let you stay in a position at least partly.  By only selling a percentage of your position not only can you make sure the trade was profitable but you can also ride the trade out so that you may benefit from any future price movement in the stock.

3.       It can satisfy your urge to take a profit.  If this is the only reason you have for taking partial profits it is well worth it.  As traders we all sometimes get the feeling that we should take profits on our positions, even if we do not have a good reason to do so.  We just don’t want to turn the profitable trade into a losing trade.

4.       It lets you put the money elsewhere.  Whether it is in your bank account or your next trade it is always a helpful to have extra cash.

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