Stocks to Sell: Lock in Profits Before They Disappear
With the market flashing uncertainty, it’s time to look for stocks to sell to lock in profits before they disappear. These IBD 50 growth stocks have hit profit-taking zones.
Why Sell Stocks on the Way Up?
Many legendary traders agree that the best time to sell a stock is on the way up. According to IBD founder William O’Neil’s research, winning stocks that run up 20%-25% after hitting a buy point tend to pull back, build new bases, and then may continue to climb.
He created a rule that once your stock has broken out, you should take most of your profits when they reach 20% to 25%. Following this rule and locking in profits helps prevent losses. It also can offset losses, which should be cut at no more than 8%, allowing you to lose twice and win once and still be ahead.
When to Sell Stocks?
If market conditions are uncertain, like they are now, then you could exit the entire position. But if the stock still looks strong, you could sell a third or half to lock in gains. Remember, if you sell and the stock forms a new base, you can always buy it back at a valid buy point.
Stocks to Sell Now
- Stock is in the 20% profit zone after advancing from the 206.68 buy point of a cup base.
- The stock jumped 5.4% in heavy volume following the company’s better-than-expected July-ended quarterly earnings and sales report on Aug. 24.
- Shares hit a 52-week high on Friday.
FTAI Aviation (FTAI)
- Stock is in the profit-taking area after climbing from a 30.26 entry of a flat base.
- The advance survived a sell-off after the company reported a mixed earnings report on July 26.
- Shares hit an all-time high on Sept. 1.
Remitly Global (RELY)
- Stock is extended from the profit zone of a cup-with-handle base with a 20.02 buy point.
- The stock jumped 20.6% after the company reported a smaller loss and higher-than-projected Q2 revenue on Aug. 2.
- The global digital funds transfer stock is near its 52-week high.
- Stock is above the profit target of a cup with handle with a 17.60 entry.
- The stock jumped 18.5% after the customer service and management platform company reported a second-quarter profit and sales beat on Aug. 1.
- Shares hit a 52-week high on Friday before pulling back.
Kinsale Capital (KNSL)
- Stock has entered the profit zone of a flat base with a 345.75 buy point.
- The thinly traded property and casualty insurance stock hit a 52-week high on Friday.
It is important to sell stocks and lock in profits before they disappear. Following the rule of taking profits at the 20%-25% mark can help prevent losses and offset them. These stocks have hit profit-taking zones and are good candidates to consider selling.