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March 3, 2024

Financials Matter

"It's Not Just About Finance"

Why You Should Take Profits

 

“I made my money by selling too soon”

~Bernard Baruch~

Legendary Wall Street Trader

 

When it comes to taking profits you often find that most investors hesitate to sell.

Why?

There’s a multitude of reasons but the most common are:

 

  • I don’t want to pay taxes.
  • What if the stock keeps going up?
  • I’ve had this stock for years and don’t want to part with it.
  • My stock is down and don’t want to take a loss.
  • The market’s gonna come back.

 

Do any of the above sound familiar to you?

If we’re honest, most of us have used these excuses before.

So, let me ask you: How many of you bought a stock, watched it go up 30 or 40% in a relatively short time, didn’t sell it, and then watched it go back down to what you originally paid for it, or saw it go negative?

Ouch!

Shoulda, coulda, woulda comes to mind.

Let me share a recent experience with you to illustrate why you’re never wrong taking profits.

After the meltdown in March we wrote in our April newsletter how oil tanker stocks were a steal.  We also disclosed that we owned several of the ones we recommended.

On March 31st we bought Scorpio Tankers at $20.17.  By April 23rd we sold it at $25.35 pocketing a quick 25.68% profit.

Then we put in a limit order to buy it back at $16.10.  That’s 35% under what we sold it for.

On May 18th our order was filled.  Yesterday it hit $19.62 and closed at $19.38.

Here’s the point.

If we hadn’t sold it for a 25% profit, we would be down from our original investment at $20.17.  Instead we’re up almost 20% again.

We’re not saying this to brag.

Well…maybe we are…kinda…sorta.

Here’s the other point.

In crazy markets – like the one we’re in – you need to think outside the box when buying and selling.

Why?

The boyz in the “Club” will, sooner or later, cut you off at the knees and you’ll never see it coming.

Don’t be worried about missing a big upswing in the market.

Why?

We’ve already had a 40% move up from the low on March 23rd.

Instead, put in a limit order to buy stocks that you like at prices 30-40 or even 50% under where they are today.

This is one of many ways we show you how to beat the boyz in the “Club” and we do it every month in our “…In Plain English Newsletter.”

You’re only one click away from learning how our current members prosper AND thrive in Turbulent Times.

Go ahead…click the link:

 

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