When to Sell Shares and Claim Profits

“Yes, but how do we make money doing that?”

From time to time, my wife engineers a trip to the local garden center so she can interrogate me about something. She’s clever that way. She knows that wandering around the house and garden puts me in an expansive mood.

The subject this weekend was our retirement account. My wife’s an outstanding prekindergarten educator. But finance and investment aren’t her strong suits.

“When money goes into our retirement account, I use it to buy shares in companies that I think will increase in value,” I explained. “If I’m right, then the value of our retirement account grows.”

She replied: “But you keep saying that the assets in our retirement account aren’t money. They’re shares in companies. So, how are we accumulating money for our retirement? We can’t eat companies.”

In her own unique way, my wife hit on a question I often get from my readers.

How, indeed, do we make money through investment? In other words, how do we know when it’s time to sell … to convert stocks back into cash?

When to Take Profits

Sometimes, the decision to sell stocks is made for us, like the required minimum distributions retirees must take from their IRAs or 401(k)s every year.

That’s an easy call to make — backed up by a hefty IRS penalty if you don’t.

But what about the assets left in that account, especially stocks? When should you sell those?

Well, when a company is declining in value with little hope of rebound, it certainly makes sense to sell. In that case, we’re preserving capital.

But the other situation — locking in profits on a winning position — is more complicated.

Profit-taking involves selling a winning position to convert those gains back into cash.

For example, if I buy $1,000 worth of shares in XYZ Corporation, and the stock appreciates by 50%, I now have an asset worth $1,500.

If I sell $500 worth of that stock, I’ve converted my gains into a cash profit. I still have $1,000 worth of XYZ shares, just fewer of them.

Here are the scenarios when I would recommend doing that:

  • When it’s time to rebalance your portfolio. When one or more of your positions enjoys rapid gains, you’re quickly going to depart from your target allocation, whatever it may be. So, you’ll want to reduce your holdings in a winning stock.
  • When the stock has reached a plateau and is likely to “consolidate” within a narrow band for an extended period. I know that sounds technical. But it’s actually quite simple. Most stocks tend to appreciate in distinct phases. In the consolidation phase, the price bounces between an upper resistance level and a lower support level. If the stock has a history of remaining in the consolidation phase for many months, taking profits may be a good idea.

Example of a consolidation pattern and breakout:

  • To recycle profits into up-and-coming stocks. Instead of having your money dawdling through a consolidation period, it can be earning new gains on another position. You could take your $500 gain on XYZ Corporation and use it to invest in a hot new growth company that’s about to enjoy a breakout.

By contrast, if a stock is experiencing strong upward momentum, trading consistently above its 200-day moving average, I’d hang in there to grab the biggest gains possible. Wait for a confirmed move back toward the 200-day average price level and take profits then.

Good Advice Is Key

The ideal time to make a move on any stock — whether buying, selling or taking profits — is when the conditions are just right.

Consistently identifying those conditions correctly takes research and experience — and a lot of it. Identifying a likely bullish breakout, an extended consolidation phase or the right time to exit a position involves more than just reading the headlines.

That’s why Clint Lee and I spend most of our workday finding these price trends for you, so you don’t have to. In fact, we’ve just taken outstanding profits on one of our open positions!

So, if you haven’t already, I strongly encourage you to have a look at The Bauman Letter and my Alpha Stock Alert.

And in case you’re wondering … yes, my wife is now a regular reader!

Kind regards,

Ted Bauman

Editor, The Bauman Letter

Previous Post
Next Post



Ridiculous quest there. What happened after? Thanks!

ankara temizlik şirketleri

When I initially commented I clicked the “Notify me when new comments are added” checkbox and now each time a comment is added I get several e-mails
with the same comment. Is there any way you can remove people
from that service? Cheers!


The atmosphere of this article is amazingly gripping.
You shown everything in a really reasonable manner.
It can be what I seemed to be reading.


I know this web site offers quality depending posts and extra material, is there any other web site which provides these kinds of data in quality?

visit their website new education policy 2019 india

I read this article fully concerning the resemblance of latest and
previous technologies, it’s awesome article.


I loved as much as you will receive carried out right here.
The sketch is attractive, your authored material stylish.
nonetheless, you command get bought an nervousness
over that you wish be delivering the following. unwell unquestionably come
further formerly again since exactly the same nearly very often inside case you shield this increase.

cây mắc ca ra hoa

My brother suggested I would possibly like this website.

He was entirely right. This submit actually made my day.
You can not consider simply how a lot time I had spent for this information! Thank you!

was gamefly

I enjoy, result in I found exactly what I was taking a look for.

You’ve ended my four day lengthy hunt! God Bless you
man. Have a great day. Bye

asmr it

After I originally commented I appear to have clicked
on the -Notify me when new comments are added- checkbox and now whenever a comment is added
I receive four emails with the exact same comment. There has to
be a way you are able to remove me from that service?

is asmr

Howdy! I know this is kinda off topic however I’d figured I’d ask.
Would you be interested in exchanging links or maybe guest writing a blog article
or vice-versa? My site goes over a lot of the same topics as yours and I think we could
greatly benefit from each other. If you happen to be interested feel free to send me an email.
I look forward to hearing from you! Great blog by the way!

asmr or

Its not my first time to visit this web page, i am browsing this web site dailly and take fastidious information from here everyday.

biblical tours in turkey

With havin so much content and articles do you
ever run into any issues of plagorism or copyright violation? My blog has a lot of exclusive content I’ve either authored myself or
outsourced but it seems a lot of it is popping it up all over the web
without my agreement. Do you know any methods to
help reduce content from being ripped off? I’d really appreciate it.

gamefly for

I appreciate, result in I discovered exactly what I was
having a look for. You have ended my four day long hunt!
God Bless you man. Have a nice day. Bye

asmr why

Nice post. I learn something new and challenging on blogs I stumbleupon every day.
It will always be interesting to read through articles from other
authors and use something from other websites.


certainly like your web site however you need to test the spelling on several of your posts.
Several of them are rife with spelling issues and
I to find it very bothersome to tell the truth then again I’ll
definitely come back again.


I absolutely love your website.. Very nice colors & theme.
Did you create this amazing site yourself? Please reply back as I’m planning to create my own personal site and want to find out where
you got this from or just what the theme is called.
Many thanks! scoliosis


Hi Dear, are you genuinely visiting this
web site regularly, if so afterward you will without doubt obtain nice knowledge.


curso mestres do bitcoin 3

Excellent post. I certainly love site. 207512438

storno brzinol

Outstanding post, I think blog owners should larn a lot from this website its rattling user genial.


preben hodneland book of mormon Musique Avec Itunes Vers Iphone Gratuitement zhuangzi book pdf

Rouge Et Noir Casino St Maarten

Bar A Ongles Geant Casino Furiani Dofus Touch Loterie Bot Casino Tapis

Les Best In Slot Wow Classic

21dukes Casino Login Tenue Casino Saint Francois Guadeloupe Rancagua Casino And Resort Monticello

twitter beğeni satın al

Admin kim bilmiyorum ama tebrikler 3 saat sonra geldi benim takipçim

clubhouse takipçi satın al

I finally saw those who viewed my twitter profile

tumblr beğeni satın al

I didn’t think it would work but I was really shocked when it came in ??


997090 817787Aw, this was an exceptionally nice post. In concept I would like to place in writing such as this moreover – spending time and actual effort to create a superb article but so what can I say I procrastinate alot by way of no indicates discover a way to go completed. 695192

Facebook izlenme hilesi

Gerçekten inanilmaz ya neler var neler 🙂

Dr Gőz Péter ügyvéd Debrecen

Good day! I know this is kinda off topic but I was wondering if you knew where I could locate a captcha plugin for my comment form? I’m using the same blog platform as yours and I’m having trouble finding one? Thanks a lot!

Digital Transformation Strategies

951060 640728This design is steller! You most definitely know how to maintain a reader entertained. Between your wit and your videos, I was almost moved to start my own weblog (well, almostHaHa!) Great job. I truly loved what you had to say, and more than that, how you presented it. Too cool! 617674


615451 273212I conceive this internet site has very amazing indited content material posts . 896958

kardinal stick

658734 621933I genuinely prize your function , Wonderful post. 974405


https://stromectolis.com/# stromectol ivermectin buy


what is the shelf life of viagra does viagra work for women where can i buy viagra over the counter


maximum dose of viagra how long does viagra take to kick in best way t o take viagra


where to buy plaquenil plaquenil alternatives plaquenil drug class


paxlovid buy paxlovid kaufen paxlovid prix


plaquenil and covid19 get hydroxychloroquine online buy hydroxychloroquine sulfate


cialis prescription cialis 2.5 mg where to get the best price on cialis


stromectol buy ivermectin for cutaneous larva migrans buy ivermectin for dogs


I’ve read some just right stuff here. Certainly worth bookmarking for revisiting. I surprise how much effort you put to make this kind of fantastic informative website.


tractor supply ivermectin paste doctors who prescribe ivermectin online ivermectin mechanism of action


buy amoxicillin online uk amoxicillin 500mg pill amoxicillin without rx


actual prescription cost of viagra genaric viagra generic viagra scam


clomid price india clomid 2019 can i buy clomid in mexico


buy clomid without script clomid pills buy online cheap clomid free shipping


how long before sex do you take viagra does viagra help with premature ejaculation how long before sex to take viagra


Hello there, just became aware of your blog through Google, and found that it is really informative.
I’m gonna watch out for brussels. I will be grateful if
you continue this in future. A lot of people will be benefited from your writing.


I do not even know how I ended up here, but I thought this post was
good. I do not know who you are but certainly you’re going to a famous blogger if
you are not already 😉 Cheers!


does viagra work for women buy viagra online without prescription where to buy viagra online


how long does it take for viagra to kick in how much is viagra at walmart is viagra covered by medicare

flight ticket

It’s not my first time to pay a quick visit this website, i am browsing this website dailly and get pleasant facts
from here all the time.


buy cialis online without prescription cialisnonprecription cialis coupon rite aid


generic cialis 7days cheap cialis by post cialis daily use side effects

best rates on airfare

constantly i used to read smaller posts that as well clear their motive, and that is
also happening with this paragraph which I am reading now.

cheap flights now

Terrific post but I was wondering if you could write a litte more on this topic?
I’d be very thankful if you could elaborate a little bit more.

Thank you!


ivermectin near me ivermectin for birds ivermectin injection

cheap tickets flights

At this time it seems like Expression Engine is the preferred blogging platform out there
right now. (from what I’ve read) Is that what you’re using on your blog?


what is the active ingredient in ivermectin ivermectin mechanism of action in scabies ivermectin for guinea pig lice


canadian cialis cialis no prescriotion what is cialis pill


36 hour cialis no prescription ed. trusted medstore in cialis do have to have a prescription for cialis?


30mg prednisone generic prednisone for sale prednisone 10mg tabs


order prednisone 10 mg tablet prednisone 20mg online can you buy prednisone over the counter in mexico


where can i get clomid uk purchasing clomid online where can you purchase clomid


how much is the price of clomid clomid 400mg 50 mg clomid capsules


doxycycline 100 capsules doxycycline cap 50mg can i buy doxycycline over the counter in south africa


clomid without prescription clomid online pharmacy india order clomid over the counter


ed meds pills drugs natural ed pills cheap ed pills


ed medication online prescription drugs online without doctor best price for generic viagra on the internet


how to help ed causes for ed natural cures for ed


herbal ed top rated ed pills erectile dysfunction natural remedies


can you buy prednisone without a prescription mail order prednisone cost of prednisone


does ivermectin kill liver flukes ivermectin for rabbits mites how to take ivermectin horse paste for scabies


prednisone without prescription.net prednisone 20 mg in india prednisone 30


stromectol 6 mg tablet buy stromectol online uk buy stromectol 6 mg online


sildenafil fast shipping – viagra for sale online sildenafil 100mg price


generic cialis in texas best price for daily cialis cialis generic vs brand


prednisone cost in india 1250 mg prednisone buy prednisone online usa


buying pills online overcoming ed buy prescription drugs online


cialis dopoxetine cialis usa online cialis reviews


5 prednisone in mexico prednisone prices prednisone 40 mg rx


prednisone 10mg prices prednisone for sale prednisone 50 mg canada


online pharmacy for cialis cialis cialis delivered in 24 hours


buy prednisone 10 mg buy prednisone online prednisone 1 mg daily


prednisone brand name canada prednisone coupon can you buy prednisone online uk


ivermectin oral for dogs ivermectin fleas ivermectin buy


pharmacy online best online drugstore new ed drugs


is propecia a prescription drug finasteride hair propecia hair loss


buy augmentin – order generic augmentin tadalafil max dose


fincar propecia generic no prescription propecia for hair loss


how to get prescription drugs without doctor best online canadian pharmacy pet meds without vet prescription canada


mail order propecia finasteride and propecia propecia uk


buy propecia tablets propesia propecia 1mg generic


how much is propecia buy propecia cheap prosteride


stromectol buy online uk ivermectin for ducks ivermectin where to buy for humans


buy generic cephalexin – erythromycin 500mg for sale order erythromycin sale


propecia pills where to buy finasteride where to get propecia


new ed treatments best male ed pills new ed drugs


trusted india online pharmacies legitimate online pharmacies india trusted india online pharmacies


sildenafil price – stromectol generic ivermectin brand


mens erection pills ed remedies best pill for ed


discount prescription drugs online canadian pharmacy certified canada pharmacy online online pharmacies without prior prescription


budesonide without prescription – antabuse oral disulfiram 250mg cheap


where to buy cheap clomid online buy clomid 50mg clomid tablets


buy tadalafil online cialis pills price of cialis 20 mg


sildenafil viagra where to buy sildenafil 100 mg lowest price


where to buy cheap clomid online buy clomid 50mg online where to buy cheap clomid online


stromectol for humans for sale stromectol 3mg walgreens ivermectin


amoxil 1000mg oral – amoxicillin 1000mg pills buy levitra 20mg without prescription


stromectol tablets for humans stromectol for sale stromectol tablets for humans


stromectol tablets for humans ivermectin prostate cancer stromectol for sale


ivermectin for people – levitra us brand vardenafil


online doctor prescription for viagra sildenafil 20 mg viagra without a doctor prescription


is cialis covered by insurance cialis pills cialis canada online


doxycycline 200mg price – buy doxycycline 100mg generic purchasing cialis on the internet


cialis 2.5 mg cialis generic cialis 2018


cialis no prescription tadalafil cialis without prescriptions canada


discount generic cialis cialis pills online doctor prescription cialis


cheap cialis cialis pills generic cialis (tadalafil) 20mg 30


viagracialisevit cialis pills cialis buy cheap with master card


deltasone 40mg drug – deltasone 5mg price buy accutane 40mg without prescription


cialis without prescriptions canada tadalafil cialis no perscription overnight delivery


order amoxil 250mg pill – amoxil price order sildenafil 150mg pill


prednisolone 5mg ca – buy neurontin 100mg pill viagra 150mg over the counter


ivermectin cream 5% stromectol cost


buy prescription drugs online without ed meds online without doctor prescription


canadian drug pharmacy canadian pharmacy online


viagra discount sildenafil


casino jackpot
all wins casino
scatter slots




cheap levofloxacin 250mg – purchase levaquin pills order cialis 10mg sale


You made some respectable points there. I seemed on the internet for the issue and located most people will associate with together with your website.


buy cialis 40mg pills – tamsulosin usa order generic tamsulosin


https://diflucan.icu/# diflucan tablets australia

medical dissertation writing services

phd dissertation writing help https://professionaldissertationwriting.org/


https://withoutprescription.store/# prescription without a doctor’s prescription

dissertation database

best dissertation writing https://dissertationwritingcenter.com/

buy a dissertation online help

dissertation abstract https://dissertationhelpexpert.com/

Leave a Reply

Your email address will not be published.