Is selling a small % of your portfolio for gains a good strategy?
So the most common thing I hear is just to DCA. Basically hold onto your stocks (which you believe in the company) and buy dips in intervals when it goes down.
But let's say you buy a stock like $Tesla (TSLA.US)$ . If it goes over $900, you sell 20% for profit and then wait until it goes back down to buy another 20%. Wouldn't that strategy makes more sense in terms of actually getting at least some profits on paper? I feel like holding and not taking any profit is a bit of a waste? What's everyone's opinion on when to sell a small percentage of your portfolio vs just holding?
I mean you can sell 10% or 20% when a particular stock goes up, then buy the dip again when it goes back down.....vs just holding (not taking profits) and buying dips. You would probably make more gains in the long run by selling a small percentage every time the stock runs up?
$Microsoft (MSFT.US)$ $Apple (AAPL.US)$ $Meta Platforms (META.US)$
But let's say you buy a stock like $Tesla (TSLA.US)$ . If it goes over $900, you sell 20% for profit and then wait until it goes back down to buy another 20%. Wouldn't that strategy makes more sense in terms of actually getting at least some profits on paper? I feel like holding and not taking any profit is a bit of a waste? What's everyone's opinion on when to sell a small percentage of your portfolio vs just holding?
I mean you can sell 10% or 20% when a particular stock goes up, then buy the dip again when it goes back down.....vs just holding (not taking profits) and buying dips. You would probably make more gains in the long run by selling a small percentage every time the stock runs up?
$Microsoft (MSFT.US)$ $Apple (AAPL.US)$ $Meta Platforms (META.US)$
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Win Big Big : 80% of your stock is long-term account, 20% is itchy finger account. You have both long term investment and short term fluctuations which you can do trading, make life more interesting day by day.
TeslaSmurf : Correct. A smaller portion can be for trading, but trading means TIMING. On a hourly basis, on a daily basis or even few minutes.
That doesn’t mean you can’t touch your long term portfolio at all. In SOME very specific cases you sell: for example if Elon sells; but only to buy them back at a much lower price.
20% is good to START buying back: not at once, you follow the trend. Fortunately I sold 2/3 of my long term portfolio (85% TSLA) by the end of last year after Elon said he would sell. I’ve been buying back since under 20% at each significant dip (you never know which is the lowest) and I still have a few to buy, ALL the way down and ALL the way up.
TeslaSmurf : But don’t sell a stock when it is still running, especially TSLA before the split.