LET YOUR PROFITS RUN

A phrase or saying often used in investing, which states the tendency of traders to sell winning investment positions too soon. Most investors are inclined to take gains off the table early out of fear that they will evaporate quickly. On the other hand, investors tend to hold onto large losing positions in the hope that the value will rise again. The key to ‘let your profits run’ phrase is not to be terrified when volatility increases and to maintain convictions on why you entered the trade in the first place.