“Published in Toyo Keizai Online” My answer to the question “When should I take profits?”

Good morning, this is Matsushita.

The Makoto Investment School was held the day before yesterday

within the Stock Investment Buy/Sell Techniques Mastery Course,

a student asked a question.

“I’m wondering when I should take profits.”

To send advice,

I asked about the trading situation in detail and was surprised,

two stocks were bought at perfect timings,

and the unrealized gains had grown nicely.

In response to this question,

I advised, “Anytime is fine, please take profits whenever you like.”

The person was stunned and said,

“But is it really okay to do it whenever I like…?”

Investors worry a lot about taking profits.

Today or tomorrow,

or should I hold on for even longer…

What they are thinking at this moment is,

“I want to obtain the highest profit.

I want to increase profits even more.”

This is simply greed.

If you are just thinking about taking profits out of greed for more and more, you will usually fail.

Moreover, this failure will be the worst kind of failure.

Why did I tell this student,

“Anytime is fine,”

is not because I dismissed them with a harsh remark.

First, regarding the two stock purchases this time,

they did not fit the student’s trading style

and deviated from the student’s original investment approach.

Naturally, since it deviates from the original style,

there were no profit-taking targets.

In other words, there were no profit-taking points from the start.

And this is decisive,

as a buying point aimed at short-term trading,

it had already achieved more than enough upside,

and reached a qualifying price level.

Putting those together,

“You can take profits whenever you like.

If you take profits, be delighted and express gratitude for the profits you took.

I think it’s a splendid profit-taking.”

I advised.

That student said,

“I see, I can take profits whenever.”

and seemed relieved again,

feeling at ease once more.

As for taking profits, and in investing in general,

if you are always wanting more, you may gain nothing.

There are times you can gain nothing.

A long time ago, someone taught me this.

“If you let go of the craving, fear disappears.”

That phrase was powerful.

I felt as if something had been lifted from my mind,

as if a weight had fallen off.

In investing as well, when you let go of the craving more than needed,

things begin to work well.

Think about it.

Taking profits is a thousand-person power.

Take profits freely whenever you want, and don’t forget to be grateful.

Profit will come again.