Retail investor: I always take profits when I'm up 20-30%. Lock in the gains.


Me: On your best companies too?
Retail investor: Especially those. Don't want to get greedy.
Me: So you sell your WINNERS... the elite companies actually carrying your portfolio?
Retail investor: I mean, a gain isn't real till you sell, right?
Me: & then it triples after you're out, you pay taxes on the sale, & you're sitting in cash wondering what to buy next.
Retail investor: ...I've literally done that.
Me: I never sell my winners just to sell them... I often hold them for years & sell portfolio secured puts to pull income WITHOUT selling a single share.
Don't sell your best companies to "lock in gains"...
Only sell when the story changes.
Trimming your winners is how you end up holding only losers.
Remember, trim the weeds & water the flowers.
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