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 ?
We attempt to deny the lack of balance with investing tips like 'Let your profits run' and 'Keep your losses small.' That is like Mom limiting her advice to 'Don't get run over and if you do, make sure your underpants are clean.'
In the City they have a saying that you should cut your losses but let your profits run. It is not always transferable to betting, even spread betting, but sometimes it is.
Roger notes that "the general idea is to cut your losses and let your profits run".