How Do You Know When It's Time To Take Profits? 💰

The hardest decisions in investing is knowing when to sell.

So how do I overcome this?

If you’ve been reading The Tobin Report for any length of time now, you know I let the charts guide me in almost every decision.

🔷 Here is a recent example of why I took profits in EGO.

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Daily Chart:

🥃 Eldorado Gold, EGO

Price moved up into a difficult level.

At the end of last year, price hit a major bottom and consolidated around the $5.25 zone.

I purchased shares on the way up as strength continued. Price broke above the moving average (yellow line), consolidated, continued higher, then pulled back. I added more.

👉🏻 All easy decisions. All chart based decisions.

Now the tough decision: When do I sell? 🤷‍♂️

Oftentimes, people ask me when I plan on selling a specific stock position and I always tell them, “It depends what the charts tell me.”

So naturally, with EGO, it was just listening to the chart.

…and the chart was now telling me it was time to take profits.

• After price moved 110% in a few short months…

• AND price was significantly above the 150 day moving average (yellow line)…

• AND price was hitting a resistance zone…

…it was time take profits.

You don’t need to tell me twice.

So I did.

Ultimately I sold my shares at a 39% gain over a very short period of time.

Zooming in on the same chart, 4-hr time frame, we can see price has since respected the trendline (white) and pulled back slightly.👇

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Could it rip higher from here without a proper correction? Of course. And I’d miss that boat. I’m okay with that. However, what I won’t miss is the 39% profit I took.

In fact, the way gold has been acting lately, I think we are on the brink of something very special in gold and gold stocks.

That said, you should always be thinking about an exit…always be prepared to take profits when they present themselves.

Remember NOT to let a profit turn into a loss. Protect your winners.

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Other examples of CHART BASED selling opportunities:

👇👇👇👇👇

💥 Microsoft, MSFT

Price moved up quickly into a double top zone…well above the moving average.

💥 Nvidia, NVDA

Well above the moving average…

💥 Apple, AAPL

Into resistance…

We are all here to make money. That’s the reason we invest.

The critical step in making money is hitting the ‘SELL’ button from time to time when the opportunity presents itself.

Hope this helps,

Eric

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