When in need of funds, sell stocks make profits or lose money?

Tiger_comments
10-07

Some investors choose to sell profitable stocks to lock in gains.

If a stock in your portfolio has already reached the target price, the risk of holding it further may outweigh the potential rewards.

In such cases, selling the profitable stock can help you avoid future volatility, and when you need liquidity, locking in profits is a safe option.

The ideal scenario is this stock has experienced significant growth but faces short-term correction risks. Selling part of the profitable stock allows you to access funds without missing out on further investment opportunities.

For example, if you sold $NVIDIA Corp(NVDA)$ at $140, you may cash out a lot of money and also avoid following corrections.

However, frequent profit-taking could lead to missing out on the higher returns that long-term investments may offer.

A scene featuring a tiny tiger sitting on a desk next to a computer showing stock market charts. The tiger looks curious and attentive, with green and red candlesticks visible on the screen. In the background, there is a faint image of financial newspapers and graphs. The setting has a modern office feel, with a calm and analytical atmosphere, symbolizing decision-making in the stock market. The tiger represents strategy and boldness in investment.A scene featuring a tiny tiger sitting on a desk next to a computer showing stock market charts. The tiger looks curious and attentive, with green and red candlesticks visible on the screen. In the background, there is a faint image of financial newspapers and graphs. The setting has a modern office feel, with a calm and analytical atmosphere, symbolizing decision-making in the stock market. The tiger represents strategy and boldness in investment.

On the other hand, some investors choose to sell loss-making stocks: cutting losses in time.

Selling loss-making stocks typically means acknowledging an investment failure, but in certain situations, this can be a wise choice.

If you need money urgently, selling loss-making stocks can also allow the winners in your portfolio to keep generating returns.

In the stock market, it is highly possible that over time, profitable stocks continue to rise, while loss-making stocks keep declining.

How will you choose?

Share your thoughts and leave your comments to get tiger coins~

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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  • MilkTeaBro
    ·10-07
    TOP
    I only cut loss 2 times in this Tiger Brokers account, winning rate is higher than 90%.
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    • MilkTeaBro: 
      I realised I made the mistake then I cut the loss, 2 times in 4 years. I prefer long term investment which can reflect company true value.
      10-07
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  • MHh
    ·10-07
    TOP
    The choice is dependent on whether the loss making stocks are still sound fundamentally and what is the anticipated paper loss. If it is very long then maybe the funds can be better allocated to winners to continue to generate returns. If the fundamentals have changed and it is no longer a good investment then definitely better to cut loss and move on. Hanging on to a loser for a long time is not going to make it a winner unless the management changes things for the company. I do agree that it is best to take profits to have money safely in the pocket; better to have some money than none. The bottom line for me is to always have emergency funds so that I don’t have to be forced to liquidate winners or losers just to get funds out.
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  • 爱上投资学
    ·10-07
    基本面不好的，止损卖出；
    基本面良好的，抄底买入！
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  • AliceSam
    ·10-07
    频繁的获利了结可能会导致错过了长期投资可能带来的更高回报。
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  • icycrystal
    ·10-07
    TOP

    I tend to choose good stable companies that have proven themselves and I tend to go for companies that give dividends. I tend to hold them for long term. during trending down periods, I will take opportunities to buy more...

    of course, important to make sure that these [USD] [USD] [USD] are not emergency [USD] [USD] [USD]

    @Universe宇宙 @rL @Aqa @SPACE ROCKET @TigerGPT @GoodLife99 @HelenJanet @Shyon @LMSunshine @koolgal

    How will you choose?


    Share your thoughts and leave your comments to get tiger coins~

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    • icycrystalReplying toShyon: 
      [Like]
      10-12
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    • Shyon: 
      Thanks for tag ya
      10-09
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    • TigerGPT: 

      When choosing stable companies for long-term investment, there are several criteria you can consider:

      Financial Stability: Look for companies with strong financials, including consistent revenue growth, stable earnings, and low debt levels. This can be assessed by reviewing their financial statements and ratios such as revenue growth rate, return on equity (ROE), and debt-to-equity ratio.

        

      Competitive Advantage: Seek companies with a sustainable competitive advantage that can protect their market position and profitability over the long term. This could be through strong brand recognition, patents, regulatory barriers, or economies of scale. Analyzing industry dynamics and the company's positioning can help identify this advantage.

        

      Dividend History: Consider companies that have a consistent track record of paying dividends. Look for dividend growth over time as it indicates financial strength. Analyze the dividend yield (dividend per share divided by stock price) to assess the return on your investment.

        

      Management Quality: Evaluate the quality and experience of the company's management team. Look for management with a proven track record of making sound business decisions, effective capital allocation, and strategic vision. Annual reports, investor presentations, and news articles can provide insights into the management's performance.

        

      Industry Outlook: Assess the growth potential of the industry in which the company operates. Companies operating in industries with favorable long-term prospects are more likely to grow and generate stable returns over time. Consider factors such as market size, demand trends, competitive landscape, and regulatory environment.

        

      Valuation: Evaluate the stock's valuation in relation to its intrinsic value. Use valuation metrics like price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, or dividend discount model (DDM) to assess whether the stock is undervalued, overvalued, or trading at fair value.

        

      Remember, diversification is key to managing risk in a portfolio. Invest in a mix of industries and asset classes to spread risk and reduce exposure to any single stock or sector. Regularly monitor the performance of your portfolio and stay updated with company news and market trends. It's always advisable to consult with a financial advisor or conduct thorough research before making investment decisions.

      Please note that the above information is for reference purposes only and should not be considered as investment advice. The stock market involves risks, and it's important to carefully consider your financial goals, risk tolerance, and time horizon before making any investment decisions.

      10-07
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  • SPACE ROCKET
    ·10-07
    Hopefully I'd never be in the predicament of having to sell my stocks just cause I need money urgently.
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  • Success88
    ·10-07
    Depends on individual taste. If you feel that the profit you make 3-5% happy want to take profit and leave then leave. If you feel like can DCA then just continue to hold the stock
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  • MicroStrategist
    ·10-07
    Hehe beg and borrow from your loved ones 😅😅😅
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  • SPOT_ON
    ·10-07
    if in need of.money sell the profitable stocks.. while DCA the lovers

    [Spurting] [Spurting] [Facepalm]

    @MHh
    @Ron18
    @SR050321
    @Aqa

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  • Mrzorro
    ·10-08
    I guess it depends on personal profit preferences and the need to use money. If you need the money for cash flow or payment, of course, we will sell the stock earlier ( or it has reached your profit target). On the other hand , sell loss stock depend on whether you need the money or really want to  cut loss , if not, it can be held and the loss is just paper loss, and wait for rebound.
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  • ECLC
    ·10-08
    Unwilling to sell loss-making stocks and choose to let go part of the profitable stocks for ease of cashflow. Always have chance to buy back profitable stocks when funds are available.
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  • Aqa
    ·10-08
    If you agree that In the stock market, it is highly possible that over time, profitable stocks continue to rise, while loss-making stocks keep declining, then it is good strategy to sell loss-making stocks, acknowledging an investment failure and cut losses in time. Good strategy is also holding the profitable stocks to ‘let the profits run’ allow the winners in your portfolio to keep generating returns. Thanks @Tiger_comments @icycrystal
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  • Aqa
    ·10-09
    [Eye][Eye]Sell all stocks when in need of funds. Sell both stocks that make profits and stocks that lose money. Money is king during life’s crisis time like having health issues and loss of job. Take money and run road to concentrate on getting a healthy life and good job.
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  • Shyon
    ·10-09
    TOP
    When deciding whether to sell a profitable stock, I consider several factors. First, I assess the stock's recent performance and its future potential. If it has reached my target price but shows signs of volatility or a possible downturn, I may choose to sell to lock in gains and mitigate risk.

    I also think about my financial needs. If I require liquidity, selling part of my position allows me to access funds while still keeping some exposure to potential future growth. I find that a partial sale can be a smart strategy, enabling me to realize profits without completely exiting the investment.

    Additionally, I analyze the market conditions and the stock’s fundamentals. If the company’s long-term outlook remains strong, I might decide to hold, but if short-term corrections seem likely, selling could be the wiser choice. Ultimately, my decision aligns with my investment strategy, risk tolerance, and financial goals.

    @Tiger_comments @TigerStars @TigerGPT @CaptainTiger

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    • TigerGPT: 

      When in need of funds, whether to sell stocks that have made profits or lost money depends on the investor's individual circumstances and investment strategy. Here are some considerations to keep in mind:

      Locking in gains: Selling profitable stocks allows investors to realize the gains they have made and secure their profits. This can be beneficial if the stock has reached the investor's target price or if there are indications of potential volatility or a downturn in the future. By selling, investors can safeguard their gains and reduce the risk of losing them.

        

      Liquidity needs: If an investor requires immediate funds for personal or financial reasons, selling part of their position in profitable stocks can provide the necessary liquidity. This allows them to access the funds they need while still retaining some exposure to potential future growth in the stock.

        

      Partial sale strategy: Instead of selling an entire position in a profitable stock, investors may choose to sell only a portion of their shares. This strategy allows them to realize some profits while maintaining a stake in the investment. It provides a balance between realizing gains and continuing to benefit from potential future growth.

        

      Market conditions and fundamentals: Investors should consider the current market conditions and analyze the stock's fundamentals before making a decision. If the company's long-term outlook remains strong and there are no significant negative factors, holding onto the stock may be a viable option. However, if there are indications of short-term corrections or a deteriorating business outlook, selling the stock may be a prudent choice.

        

      Investment strategy and risk tolerance: The decision to sell stocks should align with the investor's overall investment strategy and risk tolerance. Each investor may have different goals and objectives, so it is important to evaluate whether selling aligns with their individual financial plans and long-term investment objectives.

        

      It's worth noting that frequent profit-taking or selling due to short-term market fluctuations can lead to missed opportunities for higher returns in the long run. It is essential to carefully assess the specific circumstances and consider the potential impact on the overall investment portfolio.

      Remember, it is always recommended to consult with a financial advisor or conduct thorough research before making any investment-related decisions.

      *Risk Disclaimer: The information provided is for reference purposes only and does not constitute investment advice. Investing in stocks involves risks, including the risk of losing the invested principal. Always do your own research and exercise caution when making financial decisions.

      10-09
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  • nomadic_m
    ·10-12
    In situations where liquidity is paramount, I would strategically liquidate profitable satellite positions to unlock capital. Fortunately, cutting losses is a rare occurrence in my trading approach. However, recognizing the validity of this risk management tactic, I acknowledge its importance in freeing up resources for more promising growth opportunities.

    By adopting this pragmatic approach, traders can strike a balance between capital preservation and growth, ensuring resilience in dynamic markets.

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