When to take profits on stocks

How long should you hold? Here's a specific rule to help boost your prospects for long-term stock investing success: Once your stock has broken out, take most of your profits when they reach 20% to 25%. If market conditions are choppy and decent gains are hard to come by, then you could exit the entire position.

At what percentage should you take profits on stocks?

The 20%-25% Profit-Taking Rule in Action\n\n View the chart markups below to see how — and why — you want to take most profits once a stock is up 20%-25% from its most recent buy point.

How long should I hold a stock to make profit?

If you see any giant stock of any good company in a 10 years frame, you will see it has generated good returns in the long term. Though there is no ideal time for holding stock, you should stay invested for at least 1-1.5 years.

Should you take profits stock market?

Profit-taking benefits the investor taking the profits, but it can hurt an investor who doesn't sell because it pushes the price of the stock lower (at least in the short term). Profit-taking can be triggered by a stock-specific catalyst, such as a better-than-expected quarterly report or an analyst upgrade.

What is the 8 week hold rule?

If your stock gains over 20% from the ideal buy point within 3 weeks of a proper breakout, hold it for at least 8 weeks.