profit taking

Selling after gains

Profit taking is selling an investment after its price has risen, converting paper gains into actual money.

The term usually appears in financial reporting to explain why a stock or market declined after a run-up: The index fell 2% on profit taking.

It implies the selling reflects investors cashing in rather than negative news about the investment itself.

trading

sell-off

Rapid mass divestiture

exit strategy · stop-loss · realization · short selling · market order · liquidation · speculation · momentum · arbitrage · cash out

investing

realization

Grasping what's true

harvesting · exit strategy · divestment · returns · yield · wealth accumulation · risk management · asset allocation · financial planning · shareholder value

Categories
Opposites
investment action

profit takingbuying

Obtaining through payment

accumulation · dollar-cost averaging · market entry · doubling down · reinvesting

holding strategy

profit takingholding

Maintaining physical possession

diamond hands

response to losses

profit takingcutting losses

Accepting small defeat early

capitulation · panic selling

Family

profit, taking, profits, profitable, profitably, profitability, profiteer, profiteering, nonprofit

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Used worldwide · Timeless · Abstract · Rated G