Offensive Selling

 

“The best way to sell a stock is on the way up.”- William J. O’Neil

 

Buying stocks can be both exciting and profitable. It represents the beginning of a new relationship, with the prospect of being a financial decision that can lead to gains. You’ve done your research, you’ve built conviction, and by this time you truly believe this stock is a leader. All of this positive reinforcement may seem like a good thing at first, but it could eventually work against you once it’s time to offensively sell the position.

 

It’s not easy to walk away from a stock that is going up. Not only has the market proven us to be right, but now we are also profitable. Ego becomes even more dangerous to investors when we are making money.

 

Selling into strength has both advantages and disadvantages. It seems like whenever you decide to close your position, the stock continues to climb without you, but it is important to remember that it’s nearly impossible to sell at the top. Take profits while they are there, because nothing hurts worse than round-tripping a stock.

 


 

Earlier this week, the MarketSmith team had a chance to discuss profit taking in the latest MarketSmith webinar. If you are interested in learning more, watch “Offensive Selling Rules” by clicking here.

 

As always, if you have any questions, you can reach us at (800) 424-9033.

 

Best Returns,

 

The MarketSmith Team