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Writer's pictureDoc Mike

My personal approach on profit taking (PART 4)


I have already discuss my buying and selling strategy for market using our Doc Mike's Smart Money Pinoy Algorithm.

With this matter i tried to disconnect myself to 3 separate system.

Buying system, Selling center, and profit taking system.

the buying and the selling system are a part of the our algorithm but the Profit taking system is a personal matter and decision.

Personally i'm happy with a 15-20% gain on profit but in a dynamic system you can not stop your stock from earning 75-80%

my personal default for profit taking would be to secure or sell 50% total stock that reached 20% gain.

if it reach 40% gain, i will sell 50% of what remains of the stock and if reach 60% gain i will sell 50% of what is left. My rule is simple as a barometer 20% increments of additional gain, i would sell 50% of my stocks. i don't make it complicated but i make sure i'm consistent.

after selling, your sold stock will be converted into your buying power. What do i do next?

If i sold my stocks and get 100,000 from a sell. i will divided that to 6 months (100,000 / 6 = 16,667). I will add 16,667 pesos on my monthly budget for stock.

If my monthly budget is 10,000 + 16,667 = 26,667 for 6 months hence i will increase my monthly budget to 26,667 in the next 6 months. This will spread-out my investments, average down my stocks, and tamper my risk.

this is one of my personal strategy i don't think it is for everyone but i made my money with a simple system like this and i hope you can as well.

I wish you Good luck and God bless you


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