Price Objective Is Reached
When a profit target is reached, it is often a good time to sell. This must be balanced against the adage, “Let your profits ride,” which suggests that you only sell stocks when they start to go down. A better strategy would be to reevaluate the entire situation to see if technical indicators continue to point to higher prices. If they do, set a new target, as well as criteria for what has to happen to prove you wrong. It is also no sin to take a partial profit and, if the technicals agree, let the rest ride.
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