Yep. Wise advice. No need to get greedy. No one knows CAH’s next major move ahead of time. But she knows she’s got 20% in hand today…in two measly months. If anyone got 20% over a year or two, they’d think it was awesome and would be happy to get it. So, when the market hands you a gift of a 1-2 year annual return in 2 months, you should take it.
Additionally, other pros that got in around when we did, you know what they’re going to likely do? Sell and take profits. If that’s the case, it can weigh upon the stock price and if they’re going to sell, it would be near obvious resistance on the chart.
There’s nothing that says it “has to decline” and that it “can’t breakout above resistance”. But it also can erase 100% of your entire gain and then some. YOu’d be kicking yourself if you let a 20% gain in 2 months turn into a loss.
Keep in mind, this is our THIRD time making profits in this stock this year. 12.6%, 7.4% and 12% again. 3 “trades” in under a year for a conservative total gain of 32%.
It’s why there’s a saying on Wall St: ‘Pigs get fat, hogs get slaughtered’
What does that mean? It’s fine to take some respectable gains. But when you get greedy, the market will eventually slay you.