I have always invested in Index funds in a 401k and IRA and understand the implications with those. Last year (1 year and 1 month ago) I purchased $15,000 worth of Marvell stock in a brokerage account. I believe that I would owe long term capital gains and state income tax on this only? It’s now worth over $30,000. I don’t need the cash but feel like maybe I should lock in some gains selling half of it or so and let the other half ride? Thanks in advance.
Need help understanding when to take profits after strong stock growth
byu/Crew_1996 instocks
Posted by Crew_1996
8 Comments
Take out your cost let the profit ride. If you’re not too sure about the company take out some profit too and let 5-8k ride.
make your own research and decide at what price a currently depressed stock with higher-than-spot-price intrinsic value reaches fair value. Then, either sell it or sell ATM CCs on it.
It’s a personal risk tolerance question really. If you’re feeling worried about the downside, you can always sell a portion and diversify. I like to sell bits of my winners and put the proceeds into index funds.
One of the lessons I learned over the years is you can sell half or a quarter. Or a handful of shares.
Never the wrong move to sell some to lock in gains. What will you do with the proceeds? Selling part and riding with the rest is the way I’d do it.
Riding on your post, I also have seen a lot of people saying that you should sell your losses from time to time to balance your profit taxes. I’m from Portugal so I know that this may not be the same from country to country but in any case should this be done? Is it something that should be applied to every investor? I used to only buy VWCE but i’ve since started buying and selling some single company stocks.
Let profit ride on those DELL shares my man! To the moon
I generally sell a stock if I believe it won’t continue growing faster than the general market.