Quote:
Originally Posted by OMG!WTF!
Profit of any kind is good but you have to remember you're also paying for the losers when you trade. I find that there are typically small winners and small losers that cancel each other out. But the big winners is where the profit is. If you don't let your winners win it's hard to account for the losers and make a profit.
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Another problem with taking profits too early is that the company you are taking profits from is likely a much better company than the company you're putting your profits into. If you take profits from a company like Constellation Software, the likelihood of finding another company to invest in that is as well run/managed as Constellation is very low. Of course, I'm not advocating invest and forget. I'm advocating invest and stay invested if the story is still a good one. Multi-bagger returns only come with conviction, especially during volatile market conditions.