article in the bull, page-17

I can fully appreciate the desire to bail out with a healthy profit.

Taking a profit feels good, taking a loss feels bad, which is why many people end up with a bag full of losers. I try to do the opposite, - its never easy, - and aim to keep profits, even big ones, and get rid of losers, hopefully smaller ones. The ideal outcome is that when a downdraught comes along, your head is clear.

you will never go broke taking a profit.

Oooh, yes you can, unless you take your losses too.

I make no bones about it, most of my completed trades are losers.

If you trade on margin, then you can invest part of your profits without selling anything. That compounding works a treat in bull markets, but you have to be wide awake.

The best trade I ever did was a purchase of Mt Isa Mines call options. The price rose and I was able to exercise the options without handing over a cent. That opportunity is rare, but it does happen.

I like the price action in FSA. No real selling pressure yesterday, so FSA traders are not at all nervous.