So today I sold 25% of my position in $ARM and 20% of my position in $LRCX and took a pretty decent profit. In recent months it had driven the whole portfolio ridiculously high and I was starting to get a bit nervous. I've always had trouble selling positions and I always will, like with selling $PLTR. I notice I almost prefer when it falls and I can buy more, rather than when it shoots up like crazy (which is happening right now). I feel a bigger correction is due — not that I'm timing anything, but the feeling keeps getting stronger. And I'll probably sleep better knowing I took some profit.
What do you do when the market rallies like this?
Good luck...
Taking profits, especially in today’s macroeconomic and geopolitical climate, isn’t a bad move. I’m not selling anything myself yet, but I’m thinking about selling my $AMD shares, where I have over a 150% gain in the past three months.
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You took some profit, fine — but forget about those companies now; if they rally further in the coming months you’ll be unable to sleep again because you rushed and sold too early 😉
I'm curious how you manage to reallocate the profit you took. Do you sleep better if the stock later doubles before it corrects?
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I'm curious whether there's a consistent fundamental framework behind those sales and purchases (for example valuation, a change in the investment thesis, or a target position weight in the portfolio), or is it more of an attempt to react to the chart getting uncomfortably green?