This may sound like a stupid question, but how do you make money on stocks after you've had a period of gains? You don't want to sell your whole position, but also want to take advantage of the, say, $5,000 profit since the stock went up.
Does it make sense to sell shares equal to the $5,000 gain and re-invest it elsewhere or sit on it to buy again if the stock dips?
I wonder because as we have been seeing a market downturn, what sense does it make to sit and watch those gains dwindle toward nothing while the experts tell me that now is the time to invest to dollar cost average my holding? Is it also considered DCA to cash out the amount of the gain without selling the whole position and re-buy the stock at a lower price later?
I'm not super strong at math and I'm hoping this is a complex enough question to not get tossed toward an investopedia tutorial.
Leave a Reply