Taking Money Off The Table
For the competent trader and investor, consideration should be given to the
rate of return received on capital, regardless of the market outlook.
For example, if $100,000 grows to $150,000 in six months and the market
looks higher, but is obviously vulnerable to the unexpected, I think taking
profits for the big returns they bring. . . is the proper procedure. Most
people, especially investors, try to get a certain percentage return, and
actually secure a minus yield when properly calculated over the years.
Speculators risk less and have a better chance of getting something, in my
opinion.
–Gerald M. Loeb, from
The Battle for Investment Survival, (1996 John Wiley
& Sons, New York), originally published in 1935.