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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.
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