Repeating my question from YouTube, a little more about profit taking…

Michael DiMascio
Jul 14, 2023 10:24 AM 1 Answers
Member Since May 2023
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Hi Marty, you've stated that its a good idea to take some profit at 10% and 20% gains. Are you taking some profits still or letting it all ride since it is a power trend? You mentioned that SMCI is your largest holding but you must have a large percentage gain. One person said that as long as the stock remains above its 10 ema he usually doesn't take profit and lets it ride. Thanks!


I am sorry for the delayed reply!

We do not have any profits until we sell, and selling is when we learn most about our individual trading styles. We all have different goals and objectives in the stock market.

As a swing trader I sell 1/3 at 10% gain and another 1/3 at a 20% gain and allow the rest to work for me. That is a pretty basic tenant of my swing trading philosophy.

As a position trader I am trying to maximize gains, and the general market conditions weigh on my decisions. We are in a strong uptrending market, and I am hold SMCI which is now 24% of my portfolio. If this were a sideways market I would have taken 25% profits by now. But, I believe that stock is a model book stock and will deliver more gains that I do not want to miss out on. It may seem like I am being greedy, but I am just reading the market conditions.

I do not know which stocks you are referencing, and I will use my portfolio as an example. I sold half of my Tesla shares today as they have grown nicely in the account, and they report earnings next week. I do not want to have too much capital at risk heading into an earnings report. If the report is fine and the stock responds well, then I can always buy some back. If the report is weak and the stock craters then I can close the trade.

I hope this answers your question.


SMCI  =  24%

NVDA. =  23%

ELF =  16%

CELH = 14%

TSLA = 7%

I hold a few other speculative stocks with small positions that will not impact the account.



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Michael DiMascio
Jul 14, 2023

Thanks Marty, that makes sense to me. You would laugh if I told you how many positions I currently have, ranging from 2.5% to 5.4% of my portfolio! Ok I'll tell ya...24 positions! That is way too many and I want to reduce it to 5-10 like you. Part of the reason is that I still have my IBD Leaderboard positions (which I plan to unsubscribe from soon) and then I have added many of your Ready-List stocks on top of them since joining not long ago (at reduced position sizes of about 3-4% each until I gained more confidence). I am 61-1/2 and plan to retire at 65, but I am not afraid of some risk. The account I am trading with is about 60% of my 401-k.

- Jul 16, 2023 04:58 PM
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Marty, thanks for sharing your portfolio.

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