2013年10月18日星期五

Does this investing strategy have a name?

  • making money in the stock market
  • making money on the stock market
  • stock market investment
  • company profits
  • describe white blood cells
There are names for lots of strategies, for example Dollar Cost Averaging. But I don't know if there is a name for what I am about to describe. I can only describe it by example.


Lets say in 2011 I purchased $10,000 worth of stock XYZ. Today my initial investment has grown by price appreciation and dividends to $20,000. I sell 50% of my current investment and keep the other 50 in stock. Now I have my $10,000 back and I can attempt to do this again while still having the benefit of keeping $10,000 ownership in a stock I like.


It seems like a good way to diversify over time and it could really be done with any kind of stock based investment (where you are actually holding long on stock).
  • Additional Details
  • First Answer from Coraann is "Taking Profits." Is it still called "Taking Profits" if the initial investment has grown to only $15,000, I sell $10,000 and keep $5,000 in stock?

  • Does this investing strategy have a name?

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