taking profits


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Profit Taking

The act of selling a large quantity of security immediately after it has spiked in price, such that the seller will realize a great deal of capital appreciation. For example, suppose one buys a security at $5 and it suddenly rises to $15, and an investor sells the security. If enough investors do this, it can cause a significant, but temporary, drop in price. However, technical analysts see it as a signal of an uptrend. It is also called taking profits.

taking profits

References in periodicals archive ?
Since the 120-yen level will be another stage for the dollar, players began taking profits before it reaches that level,'' said Takashi Toyahara, foreign exchange manager at Nomura Trust & Banking Co.
According to the survey, 72 per cent of German investors, 84 per cent of UK investors and 52 per cent of French respondents plan to focus their investment teams more on taking profits and rebalancing portfolios.
Oil traders were taking profits after an overnight rally saw US crude prices rise as high as $99.
Louis also induced selling, with some investors taking profits in recent gainers, briefly pushing down the Dow more than 110 points, they added.
Perhaps because of the increasing availability of broker research on the internet, they are taking profits and reinvesting rather than following the herd.
First of all, there is evidence that the early, more aggressive hands among foreign investors are taking profits, and this is nowhere more apparent than in the sell-off of the banks.
Analysts said many investors thought share prices on both sides of the Atlantic had run ahead of themselves and were taking profits or keeping cash on the sidelines.
Irish budget airline Ryanair has had a huge 45 per cent boost in Scots passengers - taking profits to a record high.
She sold enough stock to cover her son's education bills, effectively taking profits off the table and putting them to good use.
Those who seek to criticise the one-off French market for somehow taking profits away from existing outlets are missing the point.
The drop in prices was also spurred by traders taking profits after wheat prices had hit their highest levels in four years.
Similarly, if David sees extreme panic buying with a major surge in volume for taking profits, he may get out of a position.