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To: Sawtooth who wrote (28342)4/26/1999 10:24:00 AM
From: nihil  Read Replies (1) | Respond to of 152472
 
Lose Money Taking a Profit --

Of course you can lose taking a profit. The money invested in a stock should earn an riskfree interest rate + a premium for risk (all after tax). When you take a profit smaller than the imputed earnings on your invested money you are experiencing a real loss. The way to trade stocks without regret is to sell part of your winners but never all. Ideally you recover your imputed cost, and keep the pure profit to grow. At least keep a part of the winners that you sell. Some of my favorite stocks are 100 shares of real winners where I chickened out and took a profit before the big growth occurred.



To: Sawtooth who wrote (28342)4/26/1999 12:21:00 PM
From: bdog  Respond to of 152472
 
When asked how he made all his dough, J.P. Morgan reportedly replied: "By selling too early."



To: Sawtooth who wrote (28342)4/26/1999 9:45:00 PM
From: dday  Read Replies (1) | Respond to of 152472
 
I always like to refer to one story from "Remiscences of a Stock Operator"...........

After a stock that Jesse Livermore had bought went up rather qucikly, a young broker approached him and asked why he wouldn't sell and, perhaps, buy on the inevitable dip.

Mr Livermore responded something to the effect that "I cannot sell young man because I cannot afford to lose my position."

Lesson: In a bull market never lose your position.