profit taking , core position, and trading position
#1
Wink 
i always read in the news about profit taking after a bull run. does it mean you take only the %profit or you take ALL your shares out?
what is the common practice of traders? do you take all your shares out or only the shares equivalent to %profit?

in relation also to profit taking
in the column of valentino sy at philequity corner, he usually mentions about core position and trading positions. pls correct me if im wrong and i want to know if i understood it correctly. is this related to profit taking, wherein the trader buys and sells only shares of his "trading position" while he maintains his shares on his "core position"? likewise is this also a common practice of traders, to have a trading and core position?Big Grin

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#2
Parang ganon na nga. Ganon daw ang buhay trader, sell a portion, retain the rest to ride the trend then reinstate the portion you sold when a setup occurs again. paulit ulit hanggang masira trend.

Depende din sayo kung ilang percent yung trading at core mo. Puwedeng 70% for trading, 30% core o kaya baliktad. Kahit ano. Hindi ko lang alam kung may optimum ratio sa ganyan pero personal preference na malamang yun. Hintayin din natin comment ng mga masters.

[Image: tradingposition.jpg]
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#3
(04-01-2012, 07:49 AM)kinky Wrote: Parang ganon na nga. Ganon daw ang buhay trader, sell a portion, retain the rest to ride the trend then reinstate the portion you sold when a setup occurs again. paulit ulit hanggang masira trend.

Depende din sayo kung ilang percent yung trading at core mo. Puwedeng 70% for trading, 30% core o kaya baliktad. Kahit ano. Hindi ko lang alam kung may optimum ratio sa ganyan pero personal preference na malamang yun. Hintayin din natin comment ng mga masters.

[Image: tradingposition.jpg]

many thanks kinky,
as you said i hope the masters will comment.
have a nice day.

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#4
(04-01-2012, 07:02 AM)investorjuanmig Wrote: i always read in the news about profit taking after a bull run. does it mean you take only the %profit or you take ALL your shares out?
what is the common practice of traders? do you take all your shares out or only the shares equivalent to %profit?

in relation also to profit taking
in the column of valentino sy at philequity corner, he usually mentions about core position and trading positions. pls correct me if im wrong and i want to know if i understood it correctly. is this related to profit taking, wherein the trader buys and sells only shares of his "trading position" while he maintains his shares on his "core position"? likewise is this also a common practice of traders, to have a trading and core position?Big Grin

"Profit-taking" is a term used by media and market pundits to refer to the market's pullback immediately following a steep run-up, as you correctly pointed out. It's actually a technical (meaning technician lingo) term that is the same as saying "market correction" -- both would mean that the market pullback is a technical movement after which the uptrend will continue.
If the uptrend does not continue after the pullback, then the pullback is no longer a correction or a profit-taking phase but becomes a "market reversal." That is, tapos na uptrend.
Core and trading positions, on the other hand, would refer to long-term versus short-term holding periods, but this meaning is only based on how the column writer used these terms. In actuality, the term "core holdings" is used to refer to the permanent holdings of major stockholders such as the Sy's in SM, the Ayalas in AC and ALI, etc. As minority shareholders, we don't really have so-called "core holdings," most of us have a holding period of 5 years or so (for long-term investors).
Don't be distracted by these high-falutin' words. What is important is to come up with the trading or investment style that you are comfortable with and which makes money for you. You develop your own style over time. Kanya kanyang style iyan, although at first we try to copy our idols (tulad sa sports) pero over time we develop our own style.
Have fun investing!
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#5
(04-03-2012, 03:50 PM)theg00g0l Wrote:
(04-01-2012, 07:02 AM)investorjuanmig Wrote: i always read in the news about profit taking after a bull run. does it mean you take only the %profit or you take ALL your shares out?
what is the common practice of traders? do you take all your shares out or only the shares equivalent to %profit?

in relation also to profit taking
in the column of valentino sy at philequity corner, he usually mentions about core position and trading positions. pls correct me if im wrong and i want to know if i understood it correctly. is this related to profit taking, wherein the trader buys and sells only shares of his "trading position" while he maintains his shares on his "core position"? likewise is this also a common practice of traders, to have a trading and core position?Big Grin

"Profit-taking" is a term used by media and market pundits to refer to the market's pullback immediately following a steep run-up, as you correctly pointed out. It's actually a technical (meaning technician lingo) term that is the same as saying "market correction" -- both would mean that the market pullback is a technical movement after which the uptrend will continue.
If the uptrend does not continue after the pullback, then the pullback is no longer a correction or a profit-taking phase but becomes a "market reversal." That is, tapos na uptrend.
Core and trading positions, on the other hand, would refer to long-term versus short-term holding periods, but this meaning is only based on how the column writer used these terms. In actuality, the term "core holdings" is used to refer to the permanent holdings of major stockholders such as the Sy's in SM, the Ayalas in AC and ALI, etc. As minority shareholders, we don't really have so-called "core holdings," most of us have a holding period of 5 years or so (for long-term investors).
Don't be distracted by these high-falutin' words. What is important is to come up with the trading or investment style that you are comfortable with and which makes money for you. You develop your own style over time. Kanya kanyang style iyan, although at first we try to copy our idols (tulad sa sports) pero over time we develop our own style.
Have fun investing!

thanks sir, i am learning a lot from this forum.
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