Take Profits! How many times have you read that, or been told that by friends or family?
There is a reason people encourage each other to take some profits, because everyone else is going to!
I’ve learned over the last year or two, that stocks can’t gain 10% every day for days on end.
Eventual the stock has to correct which means people are selling and taking profits. Unless your like me and just holding.
I’ve read that you don’t want to over trade, it can end up costing you money. There a ton of articles online that basically say anything you do is wrong. If you sold, you should have held. How can every choice be wrong.
This is the main reason I’ve held most of my stocks and avoided trying to “time the market”. But looking back it should have been obvious that when Canopy Growth spiked up to $17 that it wouldn’t hold that value. The market was acting irrational with people jumping on the band wagon, eventually it corrected its self.
I actually took profits
I bought into ICC thinking it was a higher risk trade. The company is listed on the TSX Venture but is based in Uruguay.
I bought a few times around .85 to .95 investing about $3000.
I watched as the stock dropped down to .73 and hung around there for a while.
During the April rush, when pretty much the entire sector went up ICC jumped up to 1.76. I could have doubled my money in about 2 months. A 100% gain in two months should pretty much mean take the money and run. I held on though.
The stock continued to drop with the rest of the sector, when it finally rebounded I sold. Right around this time Uruguay was announcing sales starting. They are selling for about 1.60 a gram, with .3 per gram going to the pharmacies. And it costs about .6 per gram to produce. Not leaving much profit margin for the company.
I ended up selling for a 27% profit or about $850. Not as good as doubling my money but now the stock sits back at .99 which would have reduced my profit even more.
I could buy back in, but I don’t really see much growth happening at this time. If they start exporting to other countries I might buy back in.