Sabrient Select Opportunity Virtual Portfolio
September 22, 2010 – Harvest More Partial Profits in long position FCX (1/3 position)
As I have discussed before, I am a proponent of "profit harvesting," in which you take partial trading profits in a position once it moves strongly in your direction. In general, for swing trades, I would look to bank some profits (e.g., 1/3 position) once a stock position has provided a 10% gain, and then again (e.g., another 1/3 position) when the balance of the position has reached a 20% gain.
We took our first 10% profit in long position FCX on September 2 when the price pushed through $77. Today we have an opportunity to book a second round of profits. The stock has continued to rally strongly.
As the price pushes through $84.25 today (actually, I’m looking at a price right now of $84.90), we have achieved a 20% gain from the original entry price of $70.20. We can let the balance of the position ride in anticipation of even higher prices.
Best Regards,
Scott Martindale
Senior Managing Director
Sabrient Systems, LLC
http://Sabrient.com
Disclosure: The author holds no actual positions in the stocks selected for this virtual portfolio.
Disclaimer: This newsletter is published solely for informational purposes and is not to be construed as advice or a recommendation to specific individuals. Individuals should take into account their own unique and specific circumstances in acting on any stock selection made by Sabrient. Sabrient makes no representations that the techniques used in these reports will result in or guarantee profits in trading. Trading involves risk, including possible loss of principal and other losses, and past performance is no indication of future results.
