Let Your Profits Run

Let Your Profits Run

An informal saying reminding investors not to panic when investments are performing well and not to maintain false hope when they are performing poorly. It is said when an investor wishes to sell a profitable position early out of fear that the investment will fall, giving back the profits. It is also applicable when the investor wishes to hold a losing investment in a probably vain hope that it will recover. In other words, one says "let your profits run" in order to keep investors from selling good investments or keeping bad ones.
References in periodicals archive ?
In the City they have a saying that you should cut your losses but let your profits run.
As a rule, try to cut your losses short and let your profits run.
Knowing when to cut your losses and when to let your profits run is essential and relies on the strictest discipline, not emotion or impulse.
Outlining your entry, objective and exit before each spread bet means that you know exactly how far to let your profits run and precisely when to cut your losses.