First Time Investor  
Page last updated 06-Jun-2008 6:04
 

Take your profits

Professional investors are always quick to book their profit.

A company that has a sharp share rise on the back of some good news one day, will invariably be hit with the hangover of small fall the next as the institutions book their profits.

A steady three day rise in a stock will eventually prompt some nervousness among investors, who it will peg back. The reason, yes you guessed it, profit-taking.

A sensible strategy if you believe your chosen stock still has some way to go, is to sell some of the shares and hold on to the remainder. This is called top-slicing.

Interesting fact!

Next...A balanced portfolio

 
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