TL;DR

A Reddit post reminds us to secure profits when investing, highlighting how potential gains can disappear if we get too greedy.

Story

Ever felt that pang of regret when you almost caught a big break but missed it? That’s the story of this Reddit post about taking profits. It’s like that time I was a kid and my dad offered me a dollar or a chance to pick a random bill from his wallet. I got greedy, went for the mystery bill, and ended up with a measly one-dollar bill anyway! So, imagine a guy (let’s call him Alex) who put money into an investment and is watching it grow—and grow fast! He sees the numbers going up and dreams of retiring early. It’s like watching a bread dough rise in the oven – exciting, right? The original poster talks about “never forgetting to take profit”. Alex gets so focused on the potential growth that he ignores the risks, like a gambler chasing one more win. Then, bam, the investment goes south faster than a squirrel with a nut. All those glorious “paper profits”—money he could have had—vanish like a magician’s rabbit. Alex is left staring at his screen, thinking, “If only I’d taken some profits when I was ahead.” Like when the dough rises too high, and when you check a few minutes later, it has deflated. This, in a nutshell, is why locking in some gains along the way is crucial. It’s like baking cookies – you need to take them out of the oven at the right time to enjoy them; leaving them in too long will just burn them. Some other users chimed in with similar thoughts. One pointed out the importance of accepting losses, while another, well, let’s say they were just impressed by the gamble. This tale of potential riches turned to dust highlights the importance of having a strategy for taking profits. It’s a lesson many of us learn the hard way – sometimes, it’s better to walk away with a smaller win than to risk losing it all.

Advice

Don’t be like Alex. Set profit targets and stick to them. A bird in the hand is worth two in the bush.

Source

https://www.reddit.com/r/wallstreetbets/comments/1hvw0wp/never_forget_to_take_profit/