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 ?
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.
According to Capita director John Roundhill, many UK investors have shown tactical awareness in taking profit off the table at a time when equities markets have performed well but have looked a little overheated.
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.
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.
Similarly, if David sees extreme panic buying with a major surge in volume for taking profits, he may get out of a position.
People are taking profits after huge gains this week made as the last group of hedge funds and other investors went dollar long," said Minori Uchida, a senior analyst at Bank of Tokyo Mitsubishi UFJ in Tokyo.
Late selling of equities for taking profits, however, ate into early gains, with many market players retreating to the sidelines ahead of the release of inflation data later this week.
They have also been taking profits on those stocks which bounced, after Bank of Scotland's bid for NatWest revived hopes of a bout of banking mergers and takeovers.
The Simulator contestant commented, "I consider taking profits when a stock is 20% to 30% past the breakout point, unless the stock makes 20% in the first two weeks of the breakout.
Prices of 10-year Japanese government bonds and bond futures fell Friday, with investors taking profits ahead of a three-day weekend.
Irish budget airline Ryanair has had a huge 45 per cent boost in Scots passengers - taking profits to a record high.